By Georgia Wells

Elon Musk announced a reorganization of xAI, his artificial-intelligence startup, days after merging it with SpaceX.

During a company all-hands meeting Wednesday, Musk confirmed that the reorganization would involve the departure of some employees and said it was made necessary by xAI's rapid growth.

"As you grow a company, a natural thing that happens is you reorganize the company as it scales up," he said at the meeting, video of which the company posted to its X social-media app. "Because we reached a certain scale, we're organizing the company to be more effective at this scale."

Musk said the people departing were "better suited to the early stages" of xAI's development.

Two of xAI's co-founders, Jimmy Ba and Yuhuai (Tony) Wu, confirmed in X posts that they were among those leaving. "Grateful to have helped cofound at the start," Ba wrote.

"It's time for my next chapter," Wu wrote.

Earlier this month, SpaceX acquired xAI in a merger that valued the three-year-old AI startup at $250 billion and the combined entity at $1.25 trillion.

Musk has told people he intends to take SpaceX public by July.

Write to Georgia Wells at georgia.wells@wsj.com

(END) Dow Jones Newswires

February 11, 2026 16:28 ET (21:28 GMT)

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