Monday night time, xAI co-founder Yuhuai (Tony) Wu introduced he was leaving the corporate. “It’s time for my subsequent chapter,” Wu wrote in a late-night post on X. “It’s an period with full potentialities: a small crew armed with AIs can transfer mountains and redefine what’s doable.”
Lower than a day later, on Tuesday afternoon, xAI co-founder Jimmy Ba, who reported on to Musk, stated that he, too, is bouncing, posting a gracious observe on X on his means out. “Monumental due to @elonmusk for bringing us collectively on this unbelievable journey. So pleased with what the xAI crew has achieved and can proceed to remain shut as a buddy of the crew,” it read in part.
On their very own, each have been fairly customary tech departure bulletins — however they’re a part of a troubling sample for the lab. Six members of the company’s 12-person founding team have now left the corporate, with 5 of the departures coming in simply the final yr. Infrastructure lead Kyle Kosic left for OpenAI in mid-2024, adopted by Google veteran Christian Szegedy in February 2025. This previous August, Igor Babuschkin left to found a venture firm, and Microsoft alum Greg Yang departed simply final month, citing health issues.
By all accounts, the splits have all been amicable, and there are many the explanation why, practically three years in, some founders would possibly resolve to maneuver on. Elon Musk is a notoriously demanding boss, and with the SpaceX’s acquisition of xAI full and an IPO pending within the coming months, everybody concerned has a reasonably large windfall coming. It’s a good time to be fundraising for an AI startup, so it’s solely pure for high-level researchers to wish to strike out on their very own.
There are additionally much less amicable causes that may think about. The corporate’s flagship product, the Grok chatbot, has struggled with bizarre behavior and apparent internal tampering — the form of factor that may simply create friction on the technical crew. Then there have been the current modifications to xAI’s image-generation instruments that flooded the platform with deepfake pornography, sparking slow-moving however actual legal consequences.
Regardless of the trigger, the cumulative affect is alarming. There’s a number of work left to do at xAI, and an IPO will deliver extra scrutiny than the lab has ever confronted earlier than. With Musk already spinning up plans for orbital information facilities, the strain to make good on these plans will probably be intense. The tempo of mannequin improvement isn’t slowing down, and if Grok can’t maintain tempo with the newest fashions from OpenAI and Anthropic, the IPO may simply undergo.
Briefly, the stakes are excessive, and xAI wants to carry on to all of the AI expertise it may possibly.
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June 23, 2026
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