The exits of Tony Wu and Jimmy Ba mean that exactly half of the company’s original 12 founding members have now left, less than three years after its launch.
The departures come at a pivotal moment, as xAI prepares for heightened scrutiny ahead of a planned public listing and accelerates efforts to compete with rivals such as OpenAI and Anthropic.
It also follows the acquisition of Elon Musk's AI startup by Elon Musk's space exploration company, SpaceX.
TL;DR
- Tony Wu and Jimmy Ba resign from xAI, reducing the founding team from 12 to six
- Five of the 12 co-founders have exited in the past year alone
- Resignations follow reported internal tensions over AI model performance
- Changes come after SpaceX moved to purchase xAI in a deal valuing the combined entity at $1.25 trillion
On Monday night (February 10), xAI co-founder Yuhuai (Tony) Wu revealed he was leaving the company. Wu wrote about it being time for his "next chapter" in a late-night post on X.
Less than 24 hours later, Jimmy Ba, who reported directly to Elon Musk, also confirmed his exit. In his own post, Ba thanked Musk and reflected positively on his time at the firm.
Neither Wu nor Ba disclosed specific reasons for stepping down, nor did they outline immediate next steps. By all accounts, the announcements resembled typical Silicon Valley leadership transitions, yet the broader pattern has drawn attention.
Reports note Ba’s resignation followed tensions within the technical team, particularly around pressure to improve AI model performance as Musk seeks to close the gap with competitors. Ba did not immediately respond to a request for comment on that report.
What Tony Wu And Jimmy Ba Said In Their Resignation
Tony Wu's post read:
"I resigned from xAI today.
This company - and the family we became - will stay with me forever. I will deeply miss the people, the warrooms, and all those battles we have fought together.
It's time for my next chapter. It is an era with full possibilities: a small team armed with AIs can move mountains and redefine what's possible.
Thank you to the entire xAI family. Onward. 🚀
And to Elon @elonmusk - thank you for believing in the mission and for the ride of a lifetime."
Meanwhile, Jimmy Ba said:
"Last day at xAI.
xAI's mission is push humanity up the Kardashev tech tree. Grateful to have helped cofound at the start. And enormous thanks to @elonmusk for bringing us together on this incredible journey. So proud of what the xAI team has done and will continue to stay close as a friend of the team. Thank you all for the grind together. The people and camaraderie are the real treasures at this place.
We are heading to an age of 100x productivity with the right tools. Recursive self improvement loops likely go live in the next 12mo. It’s time to recalibrate my gradient on the big picture. 2026 is gonna be insane and likely the busiest (and most consequential) year for the future of our species."
Exactly Half Of xAI’s 12 Founders Have Now Left
With the latest resignations, six of xAI’s original 12 founders have now departed. Notably, five of those exits occurred within the past year.
Infrastructure lead Kyle Kosic left for OpenAI in mid-2024. Google veteran Christian Szegedy exited in February 2025. In August, Igor Babuschkin departed to establish a venture firm. Most recently, Microsoft alum Greg Yang stepped away, citing health reasons.
Topics For More Insights
- SpaceX Completes xAI Acquisition; To Build AI Data Centers In Space
- SpaceX And xAI Explore Merger Ahead Of 2026 IPO
- Musk Denies Grok Deepfake Claims As California Probes xAI
- Elon Musk’s xAI Reports $1.46 Billion Loss As Startup Rapidly Expands Operations
- xAI Raises $20 Billion In Oversubscribed Series E Round To Scale AI Supercomputing
Internal Pressures, Product Challenges, And IPO Ambitions
xAI’s Grok chatbot has encountered issues ranging from unusual behavior to apparent internal tampering. More recently, changes to the company’s image-generation tools reportedly led to the spread of deepfake pornography, triggering legal and regulatory concerns.
At the same time, expectations are rising. SpaceX recently announced it would purchase xAI in a move designed to create a combined company valued at $1.25 trillion, with plans to go public later this year. The IPO is expected to help finance Musk’s ambitions, including deploying data centers in space.
There are also financial incentives at play. With the acquisition complete and a public offering pending, early team members could be positioned for significant windfalls. Combined with a favorable fundraising environment for AI startups, it is not surprising that some founders may opt to pursue independent ventures.
Still, the cumulative impact of losing half its founding team cannot be ignored. As xAI balances product refinement, regulatory challenges, and ambitious expansion plans, retaining top-tier AI talent will be critical.
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