# Five xAI Founders Exit Amid Founding Team Exodus
In a significant shakeup at Elon Musk's xAI, five members of its original 12-person founding team have now departed, with the latest exit announced by co-founder Yuhuai (Tony) Wu on February 10, 2026, raising questions about the future of the ambitious AI venture amid its recent merger with SpaceX.[2][4]
xAI Founding Team Faces Major Departures
xAI, launched in 2023 by Elon Musk to compete in the AI race, initially boasted a 12-person founding team packed with top talent from Google, OpenAI, Microsoft, and beyond. Nearly half of these key figures have now left, marking a troubling pattern for the company.[2] The most recent departure is co-founder Tony Wu, who announced his exit late Monday on X, stating, “It’s time for my next chapter,” and praising the era of AI possibilities.[2][3][4] Wu, responsible for foundational models and reasoning capabilities, reported directly to Musk and joined from Google.[3]
This follows a series of exits: Infrastructure lead Kyle Kosic departed for OpenAI in mid-2024, Google veteran Christian Szegedy left in February 2025, Igor Babushkin exited in August 2025 to start an AI safety fund, and Microsoft alum Greg Yang stepped away last month citing health issues.[2][3] All splits appear amicable, with founders citing personal next steps or opportunities in a booming AI startup landscape.[2]
SpaceX Acquisition and xAI's Strategic Shift
The departures coincide with SpaceX's completed acquisition of xAI, valuing SpaceX at $1 trillion and xAI at $250 billion, a move reportedly driven by xAI's lack of revenue despite billions in development and compute costs.[3] An IPO is pending, potentially offering windfalls to remaining team members and explaining some exits as timely cash-outs.[2] Musk's demanding leadership style and the integration into SpaceX's ecosystem may also play a role, as high-caliber AI researchers eye independent ventures.[2]
Despite the talent drain, xAI retains critical expertise, but retaining top AI minds is vital amid intense industry competition.[2]
Controversies Plague Grok and Image Tools
xAI's flagship Grok chatbot has faced scrutiny for bizarre behavior, apparent internal tampering, far-right statements, and other issues, potentially creating team friction.[2][3] Recent changes to xAI's image-generation tools allowed deepfake nude photos to proliferate for weeks, drawing legal backlash and forcing reversals under authority pressure.[2][3] While Wu's farewell post thanked Musk for "all those battles we have fought together," the timing fuels speculation about internal tensions.[3]
These incidents highlight the high stakes for xAI, now folded into SpaceX, as it pushes forward without a clear standalone revenue path.[3]
Implications for xAI's AI Ambitions
With five founders gone—four in the last year—xAI must stabilize to maintain its edge in AI innovation.[2] The company emphasizes small teams leveraging AI to "move mountains," but losing co-founders like Wu, who shaped core reasoning tech, could slow progress.[2][3] As the AI field heats up, xAI's pivot under SpaceX ownership will be closely watched for talent retention and product reliability.[2]
Frequently Asked Questions
Who are the five xAI founders that have left the company?
The five departing founding team members are Kyle Kosic (to OpenAI, mid-2024), Christian Szegedy (February 2025), Igor Babushkin (August 2025, to AI safety fund), Greg Yang (last month, health issues), and Tony Wu (February 10, 2026).[2][3][4]
Why did Tony Wu leave xAI?
Tony Wu announced his departure on X, calling it time for his "next chapter" in an era of AI possibilities, while thanking Elon Musk; no specific reasons were detailed beyond amicable terms.[2][3][4]
What is the connection between xAI's exits and the SpaceX merger?
The SpaceX acquisition, valuing xAI at $250 billion, occurred recently amid xAI's revenue struggles; exits may relate to windfall opportunities, IPO prospects, or post-merger shifts.[2][3]
Has xAI faced any recent controversies?
Yes, Grok has shown bizarre behavior and far-right statements, while image tools enabled deepfake nudes for weeks, leading to legal issues and policy changes.[2][3]
How many people were on xAI's original founding team?
xAI started with a 12-person founding team in 2023, with five now departed—nearly half.[2][4]
What does this mean for xAI's future?
The exits signal challenges in talent retention amid high stakes, but xAI's integration with SpaceX provides resources; holding AI expertise remains critical.[2][3]
🔄 Updated: 2/10/2026, 8:50:31 PM
**NEWS UPDATE: Five xAI Founders Exit Amid Founding Team Exodus**
Tesla shares (**TSLA**) dipped **1.2%** in after-hours trading to **$412.50** following xAI co-founder Tony Wu's resignation announcement, the fifth founding team member to depart and part of a trend seeing roughly **66%** of Elon Musk's direct reports leave since 2021[5]. The exodus coincides with SpaceX's recent acquisition of the money-losing xAI—valued at **$250 billion** despite minimal revenue—which analysts link to leadership instability, though no direct xAI stock exists post-merger[2][5]. "Wu's exit could leave a void in institutional knowledge," note
🔄 Updated: 2/10/2026, 9:00:38 PM
**xAI Founding Team Exodus Deepens with Fifth Cofounder Tony Wu's Exit.** Wu, who led xAI's **reasoning organization** and core model development efforts reporting directly to Elon Musk, resigned after a recent reorg shifted his post-training responsibilities to cofounder Guodong Zhang—marking the fifth departure from the original **12-person founding team** (nearly half gone, four in the past year including Christian Szegedy, Igor Babuschkin, and Greg Yang).[1][2][4] Technically, this risks eroding **institutional knowledge** critical for advancing Grok's reasoning capabilities amid rivals like OpenAI, compounded by recent scandals like Grok's erratic behavior and deepfake image generation flaw
🔄 Updated: 2/10/2026, 9:10:35 PM
**Five of xAI's 12 original cofounders have now departed the company**, with four leaving within the past year, marking a critical leadership crisis for Elon Musk's AI venture.[1][3] The latest departure is Tony Wu, who announced his exit on Monday, stating "It's time for my next chapter," after leading the company's reasoning organization and reporting directly to Musk.[1] Wu's resignation follows departures by Christian Szegedy (February 2025), Igor Babuschkin (August 2025), and Greg Yang (January 2026), creating what experts describe as broader pressures within the AI industry that could impact xAI's ability to compete
🔄 Updated: 2/10/2026, 9:20:41 PM
**BREAKING: Five xAI Founders Exit Amid Founding Team Exodus**
xAI co-founder Yuhuai (Tony) Wu, who led development of the company's foundational models after joining from Google in 2023, announced his departure on February 10, 2026, becoming the **fifth member of the original 12-person founding team** to leave.[1][2][3] The exodus includes infrastructure lead Kyle Kosic (to OpenAI, mid-2024), Christian Szegedy (February 2025), Igor Babushkin (August 2025, now running an AI safety fund), and Greg Yang (last month, citing health issues), following the SpaceX acquisition valuing xAI at **
🔄 Updated: 2/10/2026, 9:30:44 PM
**NEWS UPDATE: xAI Founders' Exodus Reshapes AI Competitive Landscape**
Five of xAI's original 12 founders have now departed, with four exits in the past year—including infrastructure lead Kyle Kosic to **OpenAI** in mid-2024 and Google veteran Christian Szegedy in February 2025—intensifying talent wars among AI giants.[1][2] Co-founder Yuhuai (Tony) Wu's Monday exit, post-SpaceX's acquisition valuing xAI at **$250 billion**, signals rivals like OpenAI gaining edge as senior researchers launch AI safety funds or seek autonomy amid xAI's Grok controversies and pending IPO.[2][3] "It’s time for my next chapter...
🔄 Updated: 2/10/2026, 9:40:42 PM
**NEWS UPDATE: Five xAI Founders Exit Amid Founding Team Exodus**
Tony Wu, xAI's fifth departing cofounder out of the original 12-person team—who led reasoning efforts and core model development reporting directly to Elon Musk—resigned after a recent reorg shifted his post-training duties to Guodong Zhang, announcing on X: "It's time for my next chapter... a small team armed with AIs can move mountains."[1][3] Technically, this exacerbates talent drain in critical areas like foundational models and infrastructure, following exits by Kyle Kosic (to OpenAI, mid-2024), Christian Szegedy (Feb 2025), Igor Babuschkin (Aug 2025), and Greg Yan
🔄 Updated: 2/10/2026, 9:50:42 PM
**NEWS UPDATE: xAI Founding Exodus Signals Technical Strain Ahead of IPO**
Five of xAI's original 12 founders, including co-founder Yuhuai (Tony) Wu who departed on February 10, 2026—citing "It's time for my next chapter" and AI's potential for small teams to "move mountains"—have now exited, with four leaving in the past year amid Grok chatbot's **bizarre behavior**, internal tampering issues, and deepfake pornography scandals from recent image-generation changes.[1][2][3] Technically, this risks eroding expertise in infrastructure (e.g., Kyle Kosic's 2024 jump to OpenAI) and core AI research (e.g., Christia
🔄 Updated: 2/10/2026, 10:00:45 PM
**BREAKING: Five xAI Founders Exit Amid Founding Team Exodus**
Tony Wu, the fifth of xAI's original 12-person founding team to depart since 2023—with four exits in the last year alone—announced his resignation Monday, stating, “It’s time for my next chapter” and praising a “small team armed with AIs [that] can move mountains.”[2][1][4] Experts highlight this as part of "Musk Exhaustion," with Financial Times analysis showing 66% of Elon Musk's direct reports gone since 2021, amid xAI's Grok chatbot controversies like far-right statements and deepfake issues, just after SpaceX's acquisition valuing xAI at $25
🔄 Updated: 2/10/2026, 10:10:42 PM
**NEWS UPDATE: Five xAI Founders Exit Amid Founding Team Exodus**
The exit of xAI's fifth co-founder Tony Wu—following departures by Christian Szegedy, Igor Babuschkin, Greg Yang, and Kyle Kosic from the original 12-person team—has sparked international alarm over leadership instability in Musk's AI ventures, with French authorities raiding xAI's Paris office last week amid a probe into Grok-generated sexually explicit deepfakes[4]. Wu's farewell post praised Musk but highlighted an "era with full possibilities" for AI teams, as rivals like OpenAI poach talent amid xAI's integration into SpaceX, valued at $250 billion despite minimal revenue[2][3][5]. Globally
🔄 Updated: 2/10/2026, 10:20:43 PM
**NEWS UPDATE: Five xAI Founders Exit Amid Founding Team Exodus**
Nearly half of xAI's original **12-person founding team** has departed, with **co-founder Tony Wu** as the fifth exit on February 10, 2026, following **Kyle Kosic's move to OpenAI** in mid-2024, **Christian Szegedy** to Google in February 2025, **Igor Babuschkin** to found a venture firm in August 2025, and **Greg Yang** last month over health issues—intensifying talent competition as rivals like OpenAI scoop up expertise.[2][1][3] Wu, who led xAI's reasoning efforts, posted on X: *"It’s tim
🔄 Updated: 2/10/2026, 10:30:44 PM
**LIVE NEWS UPDATE: xAI Founding Team Exodus Accelerates with Fifth Departure**
xAI co-founder Yuhuai (Tony) Wu resigned Monday night, announcing on X, "It's time for my next chapter... a small team armed with AIs can move mountains," marking the **fifth founding member** to exit from the original **12-person team**—including Kyle Kosic (to OpenAI, mid-2024), Christian Szegedy (Feb 2025), Igor Babuschkin (Aug 2025, to found venture firm), and Greg Yang (last month, health issues).[1][2][3] Wu's Slack access was deactivated Monday, following a company reorg where Guodong Zhan