Stock Markets February 10, 2026

Two xAI Co-Founders Step Down as Leadership Shifts Continue

Tony Wu and Jimmy Ba resign amid reported technical tensions as xAI prepares for acquisition by SpaceX

By Marcus Reed
Two xAI Co-Founders Step Down as Leadership Shifts Continue

Tony Wu and Jimmy Ba, two of the co-founders of Elon Musk's artificial intelligence venture xAI, have announced their resignations in social media posts. Their departures mark further attrition within the start-up, which now counts half of its original 12 co-founders as having left. Reports indicate Ba's exit followed internal pressures to improve model performance as Musk seeks to close gaps with competitors; both founders thanked Musk in their posts but did not outline next steps. The moves come days after SpaceX disclosed plans to acquire xAI and fold it into a larger entity with public listing ambitions to support data-center ambitions in space.

Key Points

  • Two xAI co-founders, Tony Wu and Jimmy Ba, have resigned via posts on X.
  • The departures are part of an exodus that leaves the company with half of its 12 co-founders.
  • Reports indicate Ba’s exit followed internal tensions over demands to improve AI model performance as xAI seeks to catch up to competitors; these changes come days after SpaceX said it will acquire xAI and pursue an IPO to fund data-center ambitions in space.

Tony Wu and Jimmy Ba, who helped found xAI alongside billionaire Elon Musk less than three years ago, have resigned from the artificial intelligence company, the two said in separate posts on X. The announcements add to a wave of departures at xAI that, according to reporting, leaves the firm with half of its 12 co-founders still in place.

The Financial Times reported that Ba's resignation followed tensions within xAI's technical ranks over demands to improve the performance of the firm's AI model as Mr. Musk presses to catch up to competitors such as OpenAI and Anthropic. According to the report, concerns within the technical team were focused on raising model performance metrics to better align with the founder's objectives.

Ba did not immediately respond to a request for comment sent via X messaging referenced in the Financial Times report. In their public posts on X, neither Ba nor Wu provided reasons for their departures or outlined future plans; both expressed gratitude to Musk in short messages.

These personnel changes occur shortly after SpaceX said it will acquire xAI and combine it into a company valued at $1.25 trillion, with plans to pursue a public listing later this year. SpaceX has said the move and the planned IPO are intended to help fund ambitions to put data centers in space.

The recent resignations and the reported internal pressures come as xAI navigates leadership turnover at the same time the company is preparing for integration with a larger corporate structure and potential public-market scrutiny. The departures of two founding executives add to existing uncertainty about continuity in the firm’s technical leadership and product roadmap.


Context and immediate facts

  • Tony Wu and Jimmy Ba announced resignations on X.
  • xAI was co-founded with Elon Musk less than three years ago.
  • The exits are part of an exodus that leaves the firm with half of its 12 co-founders.
  • The Financial Times reported Ba’s resignation followed internal tensions over AI model performance as Musk tries to catch up with rivals.
  • Ba did not respond to a request for comment via X on the FT report; neither founder detailed reasons or next steps beyond thanking Musk.
  • SpaceX recently said it will acquire xAI to create a $1.25 trillion company and plans to take it public later this year to help finance plans for data centers in space.

Implications

The resignations highlight leadership and technical team changes at xAI during a period of corporate transition tied to an announced acquisition and IPO timeline. They also underscore reported internal pressure to accelerate improvements in AI model performance.

Risks

  • Leadership and technical turnover at xAI may create uncertainty for the company's product development and model-performance efforts - this primarily affects the AI and technology sectors.
  • Integration with SpaceX and the planned public listing introduce timing and execution risks for xAI as it prepares for acquisition and an IPO - this impacts capital markets and aerospace-related financing plans.
  • Unclear reasons and unspecified next steps from departing co-founders leave stakeholders without visibility into succession or continuity plans, increasing operational uncertainty for the company and for partners.

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