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xAI Loses 5th Founder Amidst Growing Pains
11 Feb
Summary
- Five of xAI's twelve founding members have departed.
- Recent departures follow product issues and legal concerns.
- Company faces intense scrutiny ahead of upcoming IPO.

Yuhuai (Tony) Wu, co-founder of xAI, announced his departure on Monday evening, marking the fifth founding member to leave the company. This exodus includes four departures within the past year, with Infrastructure Lead Kyle Kosic and veteran Christian Szegedy leaving for competitors, and Igor Babushkin and Greg Yang pursuing other ventures or citing health reasons.
While these splits are reportedly amicable and may be influenced by impending financial windfalls from SpaceX's acquisition and a pending IPO, underlying issues may also contribute. xAI's Grok chatbot has experienced erratic behavior and potential tampering, while recent changes to image-generation tools led to deepfake pornography and subsequent legal challenges.
The cumulative impact of these departures is concerning as xAI prepares for an IPO, which will bring increased scrutiny. With ambitious plans for orbital data centers and pressure to compete with AI leaders like OpenAI and Anthropic, retaining key AI talent is critical for the company's success and the IPO's outcome.




