According to report, Elon Musk’s final two co-founders at his AI startup xAI have resigned, leaving the company with no remaining co-founders. The departure follows a wave of exits among Musk’s 11 original founders, who had previously left the firm in recent months. The news was confirmed by BI on Wednesday, with Manuel Kroiss, who once led xAI’s pretraining team, and Ross Nordeen, Musk’s “right-hand operator,” announcing their departures.
xAI Under Rebuilding
Musk has stated that xAI was not constructed properly in its initial phase, prompting a complete overhaul of the company. He described the process as “being rebuilt from the foundations up.” This restructuring comes amid a broader strategic shift, as xAI has been acquired by SpaceX, merging the companies under one corporate umbrella. The acquisition has raised questions about the future direction of xAI, particularly as SpaceX is reportedly preparing to go public.
Background on Key Departures
Kroiss and Nordeen had both reported directly to Musk, with Kroiss overseeing xAI’s pretraining efforts and Nordeen playing a central role in operational decisions. Nordeen previously worked at Tesla before joining xAI, where he was involved in planning major layoffs at Twitter following Musk’s 2022 acquisition of the social media platform. His departure marks another chapter in Musk’s ongoing restructuring of his ventures.
Context of the Acquisition
The integration of xAI into SpaceX has created a unified ecosystem that includes X (formerly Twitter), which Musk recently rebranded. This move reflects SpaceX’s broader ambitions, including its plans to list on public stock markets. Meanwhile, xAI remains under scrutiny as it navigates the challenges of rebuilding from scratch while maintaining its focus on advanced AI research.
TechCrunch has contacted xAI for a response to these developments but has not yet received a statement from the company. The news underscores the volatility of Musk’s business ventures and the difficulty of sustaining long-term leadership in rapidly evolving industries.
