Why Jimmy Ba and Tony Wu Left Elon Musk’s xAI: Leadership Changes Raise Questions About Startup’s Direction
Two more co-founders of Elon Musk’s artificial intelligence startup xAI have stepped down, reducing the company’s original founding team from 12 members to six.
Jimmy Ba and Tony Wu announced their departures in separate posts on social media platform X on February 11 and February 10, respectively. Their exits come just three years after xAI began operations in 2023 and follow a series of leadership changes at the company over the past two years.
Jimmy Ba and Tony Wu Announce Exit
Jimmy Ba, in his statement, said he was “grateful to have helped cofound” xAI and expressed pride in the team’s accomplishments. He thanked Elon Musk for bringing the founding team together and described the experience as meaningful both professionally and personally.
Ba also referenced xAI’s broader mission of advancing humanity along the “Kardashev tech tree.” The Kardashev scale, proposed in 1964 by Soviet astronomer Nikolai Kardashev, measures a civilization’s technological advancement based on its energy use capabilities.
While Ba did not cite a specific reason for leaving, he said it was “time to recalibrate” and hinted at focusing on the bigger technological picture in the years ahead.
A day earlier, Tony Wu also confirmed his resignation, calling xAI a “family” and thanking Musk for the opportunity. Wu said he is moving on to his “next chapter,” highlighting the potential for small, AI-driven teams to create meaningful innovation.
Both Ba and Wu previously studied at the University of Toronto. Wu had earlier worked at Google, owned by Alphabet Inc., according to Bloomberg.
xAI Founding Team Shrinks
Ba and Wu are reportedly the fifth and sixth members of the founding team to leave in the past two years.
Earlier departures include:
- Kyle Kosic (2024)
- Igor Babuschkin (2025)
- Christian Szegedy (2025)
Additionally, co-founder Greg Yang announced in January that he would step back after being diagnosed with Lyme disease.
The steady stream of exits has led to speculation about internal restructuring and strategic differences within the company.
Reports of Internal Tensions and Financial Pressure
According to reports from The Financial Times and Bloomberg, Ba’s resignation followed internal tensions within xAI’s technical teams. Sources cited pressure to accelerate improvements in the company’s AI models as it competes with industry leaders such as OpenAI and Anthropic.
Like many AI startups, xAI is investing heavily in data centers, advanced computing infrastructure, and talent acquisition — areas that require significant funding. Industry analysts note that high operating costs are common among fast-growing AI firms.
Recent reports also indicate that xAI merged with SpaceX in a deal valuing the combined entity at approximately $1.25 trillion, though details around funding structure and future capital requirements remain under discussion.
Regulatory Scrutiny and Market Competition
xAI has also faced regulatory scrutiny in multiple regions regarding its chatbot Grok AI, particularly related to its image-generation features. The company has not publicly detailed the impact of these reviews on its operations.
At the same time, competition in the AI sector continues to intensify. Companies such as OpenAI, Anthropic, Google DeepMind, and others are rapidly advancing their large language models and AI systems.
Is xAI in Crisis?
While the back-to-back departures have raised questions about the company’s direction, neither Ba nor Wu indicated conflict in their public statements. Both described their exits positively and expressed continued goodwill toward the team.
Leadership changes are not uncommon in fast-growing technology startups, especially in highly competitive sectors like artificial intelligence. However, with half of its founding team now gone, xAI enters its next phase amid both ambitious goals and heightened industry scrutiny.
As the AI race accelerates, all eyes will remain on how Elon Musk’s venture navigates leadership transitions, funding demands, and global competition in the months ahead.
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