Since the xAI-SpaceX merger was announced last week—boasting a staggering $1.25 trillion valuation, making it the biggest merger ever—several xAI employees and two co-founders have suddenly decided to leave the company, sharing lengthy farewell messages online. Some of them also mentioned they’re launching their own AI startups. Co-founder Yuhai (Tony) Wu announced his exit on X, stating it was “time for [his] next chapter.” Later that same day, fellow co-founder Jimmy Ba shared a similar sentiment, saying it was “time to recalibrate [his] gradient on the big picture.” As a result, xAI now has only six of its original 12 co-founders still on board.
These departures come in the wake of new plans for the merged entities, which Elon Musk recently revealed will focus on creating “space-based AI” data centers and bringing together elements like “AI, rockets, space-based internet, direct-to-mobile device communications, and the leading platform for real-time information and free speech.” Reports indicate that Musk also discussed the development of an AI satellite factory and even a city on the moon during an internal xAI meeting.
On Wednesday, Musk took to X to explain that “xAI was reorganized a few days ago to improve speed of execution,” and noted that this reorganization “unfortunately required parting ways with some people.” He then encouraged others to apply for positions at the company and shared a recording of a 45-minute internal all-hands meeting where the changes were outlined.
“We’re organizing the company to be more effective at this scale,” Musk stated during the meeting, adding that the company will now focus on four main application areas: Grok Main and Voice, Coding, Imagine (for image and video), and Macrohard, which Musk described as a function aimed at performing full digital emulation of entire companies.
