Elon Musk's AI Venture Faces Exodus as Half of xAI's Founding Team Departs Amid Internal Disputes

Stock News
02/11

Two co-founders of Elon Musk's artificial intelligence (AI) company, xAI, have announced their departure. Tony Wu and Jimmy Ba stated on social media that they have resigned from the company, which they co-founded with billionaire Musk less than three years ago. Both Tony Wu and Jimmy Ba are graduates of the University of Toronto, with Tony Wu having previously worked at Alphabet. They were among the 12 co-founders when xAI was established in 2023. Their resignations represent the latest in a series of departures from xAI's core team, with half of the original 12 co-founders having now left. Earlier, Kyle Kosic departed in 2024, while Igor Babuschkin and Christian Szegedy left last year. Another co-founder, Greg Yang, announced last month that he would step back from frontline duties after being diagnosed with Lyme disease. Reports indicate that Jimmy Ba's departure stemmed from internal tensions within the technical team regarding demands to enhance AI model performance. Musk is actively pushing the company to catch up with competitors such as OpenAI and Anthropic. As of now, Jimmy Ba has not commented on the reports via the X platform. Neither individual explained their reasons for resigning or disclosed future career plans in their statements on X, though both expressed gratitude to Musk. These personnel changes at xAI come shortly after Musk's space exploration company, SpaceX, announced it would acquire xAI. The merged entity is valued at $1.25 trillion and plans to go public later this year, providing funding for Musk's ambitious plan to build a space data center.

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