xAI Co-Founders Depart En Masse as Musk Apologizes and Pledges Talent Rebuild

Founded in July 2023 with 11 co-founders, xAI is central to Elon Musk’s effort to compete with OpenAI and Google in generative AI. Nine of those co-founders have now left. The talent upheaval, coming as SpaceX acquires xAI, has raised questions about whether the company can support an IPO plan targeting a valuation of as much as $1.5 trillion.

Musk recently apologized publicly and acknowledged problems with organizational development and recruitment during xAI’s early days that contributed to the loss of talent. Reports said about 50 employees had left the company over the past three months. xAI is now working with Human Capital to review previous interview records and proactively contact candidates it had rejected as it rebuilds its talent base and corporate structure.