Written By Deepti Ratnam
Published By: Deepti Ratnam | Published: Feb 12, 2026, 11:49 AM (IST)
Elon Musk’s xAI might be facing difficulties recently after 6 out of 12 founding members have left the company. This is one of the major internal changes happening currently within the brand. The latest departures have raised concerns and questions about the stability at a time when xAI is preparing for bigger moves. The moves include a major possible IPO at xAI. With the company’s chatbot GrokAI already under pressure, these exits are witnessed as a critical incident for the tech giant
Recently, co-founder Yuhai ‘Tony’ Wu announced his departure from the xAI on Monday. He announced his exit through a post on X, saying he is moving on to begin a new chapter in his life. Not much longer after this, another co-founder, Jimmy Ba also confirmed his exit, thanking Musk and publicly announcing his departure from the company.
We can’t anticipate any challenges here as both the statements were positive in tone. Nevertheless, together they mark a major shift and change inside company’s structure. With these two exits, exactly half of xAI’s founding team has now left.
To recall these exits did not happen overnight and over the past few years, several key members have stepped down as a major part of the company. In 2024, Kyle Kosic, responsible or handling Infrastructure, moved to OpenAI. Talking about the Christian Szegedy, he left in early 2025 and Igor Babuschkin departed too to start his own venture. Greg Yang, who has played a major part in the growth of the tech giant also left recently, citing health reasons.
While every departure may have a personal or professional reason, it surely impacted the company and is witnessed as a significant loss. The combined effect of losing six founding members within three years now creates uncertainty for xAI.
Grok, XAI’s main product is severely facing technical and reputational challenges. There have been several reports of chatbot’s unusual behavior and generating explicit images. The platform is also having some internal issues too. A lot of reports are coming related to the image generation tool, including legal concerns and misuse. All these situations may have increased pressure within the team.
The artificial intelligence industry is moving fast, with companies like OpneAI and Anthropic releasing advanced tools and models, the challenges for Elon Musk’s xAI is increasing at rapid pace. For company, keeping up this competition is critical and necessary.