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xAI Co-Founder Departs Amidst Startup Restructuring
27 Feb
Summary
- Toby Pohlen is the seventh xAI co-founder to leave in under three years.
- Nvidia's stock fell 5.5% after its forecast failed to ease AI bubble fears.
- The company's first-quarter sales outlook projected $78 billion in revenue.
Toby Pohlen, a co-founder of Elon Musk's xAI, announced his departure from the artificial intelligence startup on February 27, 2026. Pohlen is the seventh of twelve original xAI co-founders to leave the company within three years, following recent exits by Jimmy Ba and Tony Wu. His departure occurs amid a significant restructuring initiated by Elon Musk after xAI's merger with SpaceX, a deal valued at $1.25 trillion. Musk had previously assigned Pohlen leadership of Macrohard, a division focused on AI software.
Separately, Nvidia Corporation, a leading artificial intelligence chip manufacturer, saw its stock price drop by 5.5% on February 27, 2026, marking its largest single-day decline in ten months. This fall came despite the company reporting strong fourth-quarter revenue growth of 73% and issuing an upbeat first-quarter sales forecast of approximately $78 billion. Investors remain cautious, seeking further assurance that the current surge in AI spending is sustainable beyond the next few years.
Nvidia's Chief Executive Officer, Jensen Huang, expressed confidence in continued growth, citing customer investments in computing power. However, concerns persist, particularly regarding future demand sustainability and Nvidia's market dominance as AI tasks evolve. The company is also navigating supply chain challenges for its advanced chips and faces ongoing uncertainty in the Chinese market, its largest chip market, with US government restrictions impacting sales.
