Elon Musk is offering xAI employees $420 for tax returns to train Grok AI

Elon Musk's xAI reportedly offered employees $420 in exchange for their tax returns to help train Grok AI. The move raises concerns around privacy and employee data use, especially as similar AI tracking practices emerge at Meta.

In Short

• xAI allegedly asked employees, friends and family for tax return data to train Grok AI
• Many employees reportedly still haven’t received the promised $420 payment
• Meta is also facing criticism for tracking employee activity to train AI models

Elon Musk's AI company xAI could face some criticism after a fresh report claims that employees were promised $420 in exchange for sharing their tax returns, so the company could train its Grok AI chatbot. The unusual proposal, first reported by Bloomberg, reportedly came as xAI rushed to improve Grok's ability to handle tax-related queries before the April 15 filing deadline in the US. According to the report, employees were asked to submit completed tax returns along with supporting documents so Grok could learn from real-world financial data and become better at helping users prepare taxes. The offer reportedly did not end with employees. Friends and family members who had used professional accountants to file taxes were also invited to participate in exchange for the same payment.

However, the report says many employees who handed over their information are still waiting for the promised money. Some workers who followed up about the payments were allegedly told that the manager overseeing the program was no longer with the company.

The $420 figure itself appears to be another one of Musk's recurring references to cannabis culture, a joke he has used repeatedly over the years in public posts and company messaging. But, this kind of data collection behaviour to train an AI model is a bit concerning, raising fresh questions around privacy and handling of sensitive financial data.

xAI is trying to keep up with other AI companies

The development comes at a time when Grok is struggling to keep up with rivals in the crowded AI race. Chatbots from OpenAI, Google, Microsoft and Anthropic currently dominate the market in terms of popularity and adoption. Musk has been aggressively pushing Grok through his social media platform X while also expanding xAI’s presence through government partnerships and new integrations.

The company’s urgency to improve Grok's finance-related responses also shows a trend in the AI industry, where firms are increasingly looking for real-world data to train their systems. Interestingly, OpenAI is also testing new personal finance features for ChatGPT that allow users in the US to connect financial accounts and analyse spending patterns. While the company says the process is secure, concerns around privacy and data handling continue to remain a major issue for users.

Musk’s critics have also pointed to what they see as contradictions in his AI strategy. Back in 2023, Musk had signed an open letter calling for a temporary pause in advanced AI development, citing safety concerns. Later reports revealed that he spent much of that period building xAI, a move many in the industry viewed as an attempt to slow competitors while preparing his own entry into the market.

Meta too facing backlash over employee data tracking

The controversy around xAI arrives just weeks after another major tech company, Meta, drew criticism for using employee activity data to train AI models. Reports in April 2026 claimed that Meta introduced a new internal tool that tracks workers’ keystrokes, mouse movements and app activity on company devices.

According to BBC, Meta told employees that the data would help train AI systems designed to perform computer-based tasks more effectively. The company defended the move by saying AI agents need examples of how humans actually use computers in day-to-day work.

But several employees reportedly reacted negatively to the system. One worker described the idea of every action being monitored for AI training as "very dystopian," especially at a time when employees are already worried about layoffs. Another former employee claimed the company had become "obsessed with AI."

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