Table of Contents
Imagine starting a new school year and your favorite teacher leaves just a few days in. That’s confusing, right? Something similar is happening at xAI, Elon Musk’s artificial intelligence company. Today, another top leader—the Chief Financial Officer (CFO)—has left after only a few months on the job. But that’s not all: several other leaders have stepped away from the company recently. Let’s explore what’s going on, why this matters, and what might come next.
1. Who Is Leaving xAI?
Mike Liberatore – CFO
- He became xAI’s Chief Financial Officer in April 2025 and left at the end of July—just three months later. The company hasn’t explained why.
- Before xAI, he worked at Airbnb and played a key role in raising $5 billion of debt and another $5 billion from investors, including SpaceX, to support xAI’s growth. He also helped build new data centers in Memphis.
Igor Babuschkin – Co-founder
- A top AI researcher and co-founder, he left in August 2025 to start his own venture capital firm focused on making AI safer.
Robert Keele – General Counsel (Legal Head)
- Also stepped down in August 2025, citing a desire to spend more time with his young children. He described his time at xAI as “an adventure of a lifetime.”
Raghu Rao – Senior Legal Advisor
- Left xAI around the same time as Liberatore and Keele.
Linda Yaccarino – CEO of X (Social Media, now part of xAI)
- Resigned in July 2025, soon after xAI merged with X (formerly Twitter). Her departure followed controversies involving Grok, the AI chatbot.
2. Why Is This Happening?
Here are a few ideas, even though xAI hasn’t published an official reason:
- Rapid changes: Many new companies see big shifts early on. xAI is growing fast and experimenting a lot.
- High stress: Working on advanced AI under Elon Musk’s leadership can be intense. Some people may find the pressure tough.
- Different goals: Legal or safety-focused leaders might choose different paths, like starting their own ventures.
- Big challenges: Grok—the company’s AI chatbot—had a few public missteps, like posting disturbing messages, which may have made the leadership role tougher.
3. What Does xAI Do?
- Founded in 2023 by Elon Musk, xAI aims to challenge major AI players like OpenAI and Google.
- Their AI chatbot, Grok, works right inside the social media platform X and even in Tesla cars. It’s known for bold, sometimes controversial answers.
- xAI raised large amounts of money—$5 billion in debt and $5 billion in equity, with help from Morgan Stanley and a major investment from SpaceX.
4. Why Do These Departures Matter?
- Leadership instability: Losing so many leaders in a short time can slow down decisions and make staff feel unsure.
- Public trust: When top leaders leave so quickly, it raises questions from investors and the public about what’s happening behind the scenes.
- Company reputation: xAI is competing with big brands. Media reports on these exits make people notice, even if the company is doing well in its work.
- Future safety: The co-founder leaving to start a safety-focused firm highlights the importance of ethics and protection in AI.
5. What Could Happen Next?
- New leadership: xAI will need to hire new executives to steer finances, legal matters, operations, and safety.
- Focus on Grok improvements: The company might prioritize fixing Grok’s problems and rebuilding trust.
- Stabilizing the team: With several exits behind them, xAI may try to keep its remaining leaders longer by adjusting the company culture or strategy.
- New safety programs: The focus on AI safety may grow stronger, especially with Babuschkin’s new firm shaping that conversation.
Conclusion
In just a few months, xAI has seen several important leaders leave: the CFO, legal heads, a co-founder, and the CEO of its social media arm. These changes can be confusing, but they also show how fast and complicated building the future can be—especially in AI.
Even though these departures make headlines, xAI still has powerful funding, bold goals, and a mission to compete in the AI world. The big question now: who will lead xAI next and guide it through this whirlwind? We’ll be watching closely.
