Musk Cuts Two More xAI Founders, Leaving Only Two of 12 Ahead of IPO
Elon Musk has removed co-founders Guodong Zhang and Zihang Dai from xAI’s coding division, reducing the startup to two of its 12 founders as part of management overhaul ahead of a planned IPO. SpaceX fixers were brought in to audit underperforming staff, sparking morale concerns and recruitment drives by rivals.
1. Management Shakeup
Elon Musk brought in senior executives from SpaceX and Tesla to overhaul xAI’s coding division as he prepares the AI venture for a planned IPO. The merger with SpaceX aims to create a $1.25 trillion company, prompting leadership changes to address underperformance.
2. Co-founder Exits
Guodong Zhang and Zihang Dai, heads of key development teams, were removed or resigned this week, leaving only two of the original 12 co-founders at the three-year-old startup. Their departures follow criticism of coding deliverables and a push to meet performance benchmarks.
3. Staff Impact and Recruitment
The management audit has raised concerns over morale, with employees citing “extremely hardcore” work demands and burnout. Rival firms are capitalizing on discontent by extending offers to previously rejected candidates, often with enhanced financial incentives.