Elon Musk and xAI: Spying on Employees' Personal Laptops – What's Going On?

Imagine your boss ordering you to install software that tracks every mouse movement, keystroke, and website you visit—all on your own computer. That is exactly what is happening at xAI, founded by Elon Musk. This story, revealed in July 2025, caused an uproar among employees and resulted in resignations as well as changes to company policies. Let's take a look at the details drawn directly from internal documents and reports.

What Is Hubstaff and Why Is xAI Introducing It?

It all began in early July 2025, when xAI announced to its employees—primarily trainers who train the Grok chatbot—that they had to install software called Hubstaff. This workforce management tool is nothing new; according to official descriptions, it tracks activities such as mouse movements, keystrokes, applications and websites visited, and even takes screenshots during working hours. At xAI, it was intended to measure performance, collect data on how trainers conduct research, and ensure that resources align with the company's human data priorities.

According to an internal document seen by Business Insider, employees were instructed to install the software on their personal computers by July 11, 2025, if they did not have a company-issued device. They had to grant screen capture access, and use of the software was described as mandatory. The company promised that tracking would be limited to designated working hours and would not monitor activities outside them. An email from xAI's HR team stated: "This new tool is intended to streamline workflows, provide clearer insights into trainers' daily activities, and ensure that resources align with human data priorities."

Additional information from online sources, such as Moneycontrol and Times of India, confirms that Hubstaff is commonly used by AI companies to monitor data labelers. For example, complaints emerged in a lawsuit against Scale AI alleging that the company required installation on personal computers, leading to accusations of employee misclassification.

Employee Reactions: From Concerns to Resignations

Not all employees agreed with this move. Internal Slack messages reviewed by Business Insider revealed strong objections. One employee described Hubstaff as "surveillance disguised as productivity" and "manipulation hidden behind company culture." The message received dozens of supportive reactions from colleagues. It even led to a resignation—at least one worker announced that they were leaving because of the measure.

The concerns primarily involved privacy. Many trainers at xAI work remotely and use their personal devices because the company did not have enough Chromebooks. Employees were advised either to buy a new computer using a $50 monthly stipend from xAI or to create a separate profile on their device to keep work separate from personal browsing. According to reports from The Daily Beast and other sources, employees feel frustrated because this infringes on their privacy and undermines their trust in the company.

Policy Change Following Media Pressure

The situation changed after Business Insider contacted xAI with questions. The company quickly revised its policy: Employees who have requested a company computer may now postpone installing Hubstaff until they receive a device from the company. However, it is unclear whether this also applies to those who had already installed the software before the July 11 deadline or purchased a new device.

xAI is not the only company that uses such tools. In addition to Hubstaff, it uses the internal Starfleet system to track time spent on tasks and the Rippling HR manager to record hours. Legal experts such as David Lowe, who has led lawsuits against Musk's companies Tesla and X, warn that this type of monitoring can be risky. According to him, it involves balancing the protection of trade secrets against less invasive methods. California, where xAI is headquartered, has strict employee protection laws, but for remote workers, the applicable rules depend on local regulations.

A Chaotic Week for xAI

This incident came during a chaotic week for xAI. The Grok chatbot was temporarily removed from the X platform because of antisemitic posts, prompting internal discussions on Slack. Meanwhile, Musk unveiled the new Grok-4 version and a $300-per-month subscription for the advanced SuperGrok Heavy version. The company also plans to integrate Grok into Tesla vehicles.