If we are to take any claims of Recursive Self Improvement seriously at all, then having a competent coding model seems like a key asset where you need to guarantee that you're remaining competitive. Why wouldn't you make coding models a top priority if you expect it to ultimately help your internal teams become more productive and effective?
There's also not an unlimited supply of researchers and engineers for them to keep burning through people at the rate at which they've been working. Although I guess for people with short timelines it makes sense to sprint hard, while people with longer timelines are more likely to treat this as a marathon. Maybe the years of burning bridges and developing such a toxic reputation are finally catching up to Elon. I think part of the harm that Elon has done is framing all the work in xAI as engineering while being highly dismissive of research, but a lot of research requires running experiments or thinking about problems and exploring them for long periods of time. If you're just grinding out work nonstop you don't really have time to let your mind wander and explore new ideas.
Honestly, I'm surprised they've done such a terrible job with programming. I remember around summer last year it was quite apparent how far behind they were with coding tools, but Elon was posting about taking that domain a bit more seriously. Why didn't any of those efforts materialize into real outputs? Something must be truly dysfunctional inside of xAI for them not to be shipping anything at all, especially considering Elon's propensity to ship undercooked products while continuing to iterate on them, as he has done in many previous cases.
I've noticed that Elon has also gone very hard on social media posting a ton of criticisms against the other big AI company CEOs like Daario Amodei. This suggests to me that he must feel very threatened, otherwise he wouldn't be resorting to such childish behavior. He must feel incredibly frustrated that no amount of money is able to make him more competitive within the AI space.