Since the xAI-SpaceX merger announced last week, which combined the two companies (as well as social media platform X) for a reported $1.25 trillion valuation — the biggest merger of all time — a handful of xAI employees and two of its co-founders have abruptly exited the company, penning long departure announcements online. Some also announced that they were starting their own AI companies.
Co-founder Yuhai (Tony) Wu announced his departure on X, writing that it was “time for [his] next chapter.” Jimmy Ba, another co-founder, posted something similar later that day, saying it was “time to recalibrate [his] gradient on the big picture.” The departures mean that xAI is now left with only half of its original 12 co-founders on staff.
It all comes after changing plans for the future of the combined companies, which Elon Musk recently announced would involve “space-based AI” data centers and vertical integration involving “AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free speech platform.” Musk reportedly also talked of plans to build an AI satellite factory and city on the moon in an internal xAI meeting.
Musk wrote on X Wednesday that “xAI was reorganized a few days ago to improve speed of execution” and claimed that the process “unfortunately required parting ways with some people,” then put out a call for more people to apply to the company. He also posted a recording of xAI’s 45-minute internal all-hands meeting that announced the changes.
“We’re organizing the company to be more effective at this scale,” Musk said during the meeting. He added that the company will now be organized in four main application areas: Grok Main and Voice, Coding, Imagine (image and video), and Macrohard (“which is intended to do full digital emulation of entire companies,” Musk said).
