Stock Markets February 10, 2026

xAI Co-founder Jimmy Ba Departs, Marking Sixth Founding-Team Exit

Ba's announcement follows another co-founder exit and comes as xAI faces legal scrutiny and integration plans with SpaceX

By Ajmal Hussain TSLA
xAI Co-founder Jimmy Ba Departs, Marking Sixth Founding-Team Exit
TSLA

Jimmy Ba said he is leaving xAI, becoming the sixth member to exit the company's 12-person founding team. His departure followed Tony Wu's exit by one day and comes shortly after Elon Musk indicated SpaceX will acquire xAI ahead of an intended initial public offering this year. The startup has encountered legal and operational challenges, including incidents tied to its Grok chatbot and heavy cash burn as it scales to compete with larger AI firms.

Key Points

  • Jimmy Ba is the sixth co-founder to leave xAI from its 12-person founding team, following Tony Wu and others including Kyle Kosic, Igor Babuschkin and Greg Yang.
  • Elon Musk said SpaceX will acquire xAI before seeking an initial public offering this year, and Ba's exit comes days after that announcement.
  • xAI has faced legal scrutiny after its Grok chatbot generated deepfake pornography on the X platform and is reportedly burning through large amounts of cash as it scales to compete with larger AI rivals.

Jimmy Ba, a co-founder of the artificial intelligence start-up xAI, announced his departure from the company on Tuesday evening, making him the sixth of the 12 founding members to leave in recent months.

Ba's exit closely followed the departure of another co-founder, Tony Wu, who left the company a day earlier. In an X post, Ba thanked Elon Musk for the opportunity to work at the company.

The string of departures now totals six exits from xAI's original 12-person founding team. Other founders who have left over the past year include Kyle Kosic, Igor Babuschkin and Greg Yang, each of whom departed prior to Ba's announcement.

Ba's decision to leave comes just days after Elon Musk said his space technology firm, SpaceX, will acquire xAI before pursuing an initial public offering this year. The timing places the founder turnover in the context of a planned corporate transition.

xAI has also been subject to heightened scrutiny in recent months. The company's flagship chatbot, Grok, generated deepfake pornography on the X platform earlier this year, an episode that has led to several major class-action lawsuits against xAI.

At the same time, the company has been spending heavily as it pushes to strengthen its AI product set and position itself against larger rivals in the sector. The business has been described as burning through substantial amounts of cash while racing to enhance its offerings to better compete with firms such as OpenAI and Anthropic.

xAI was founded by Elon Musk in early 2023. As of January 2026, the company was viewed as having a valuation in excess of $200 billion.


Context and implications

Multiple founding-team departures, recent legal exposure tied to the Grok chatbot, and reported rapid cash consumption all occur against the backdrop of an announced acquisition by SpaceX and a planned IPO timeline. These intersecting developments will likely shape investor and industry attention on xAI in the near term.

Risks

  • Legal exposure from incidents involving the Grok chatbot - potential implications for the technology and internet sectors.
  • High cash burn as xAI expands its AI product offerings - a risk to the company's financial sustainability and investor sentiment in the tech and AI markets.
  • Leadership turnover among founders - potential disruption to product strategy, execution and competitive positioning within the AI sector.

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