Half of xAI’s founding team has now left the company

Rapid founder departures at xAI highlight growing pressure inside Musk’s AI company as Grok struggles and IPO expectations increase across an increasingly competitive artificial intelligence industry.
Leadership turnover threatens momentum at xAI, where senior researchers are leaving during a crucial period marked by Grok controversy, investor anticipation, and fierce rivalry with AI competitors.

Departures from Elon Musk’s AI startup xAI have reached a symbolic milestone, with two more co-founders announcing exits within days of each other. Yuhuai Tony Wu and Jimmy Ba both confirmed their decisions publicly, marking a turning point for the company’s leadership.

Losses now total six out of the original 12 founding members, signalling significant turnover in less than three years. Several prominent researchers had already moved on to competitors, launched new ventures, or stepped away for personal reasons.

Timing coincides with major developments, including SpaceX’s acquisition of xAI and preparations for a potential public listing. Financial opportunities and intense demand for AI expertise are encouraging senior talent to pursue independent projects or new roles.

Challenges surrounding the Grok chatbot, including technical issues and controversy over its harmful content, have added internal pressure. Growing competition from OpenAI and Anthropic means retaining skilled researchers will be vital to sustaining investor confidence and future growth.

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