Elon Musk Restructures xAI Amid Key Departures and Upcoming IPO

By Patricia Miller

Mar 13, 2026

1 min read

Elon Musk's leadership causes turmoil at xAI as co-founders and staff depart amid restructuring for a potential IPO.

The recent restructuring of xAI has raised eyebrows in the tech world, particularly after Elon Musk took the helm following SpaceX's acquisition. This significant shift began in mid-February with the intent to streamline operations ahead of a potential initial public offering.

Why are key figures leaving xAI? Notably, the departure of co-founders such as Tony Wu and Jimmy Ba has brought the founding team down from twelve members to just two. Musk's leadership style has not only seen co-founders exit but has also led to considerable anxiety among remaining staff. Reports indicate a growing frustration with the coding division, culminating in team leader Guodong Zhang's recent resignation after Musk pointed to coding problems linked to his responsibilities. This follows the earlier exit of co-founder Zihang Dai, further reducing the leadership stability.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.