xAI Loses Half Its Founders in $250 Billion Restructure; Google Backs 450 MW AI Lease
Elon Musk’s xAI has lost half its founders as Toby Pohlen, Yuhuai Wu and Jimmy Ba depart while Musk restructures the company ahead of a potential IPO, with SpaceX valuing xAI at $250 billion. Google backed TeraWulf’s 450 MW Fluid Stack lease with credit support to expand power-backed AI infrastructure.
1. xAI Founder Departures
Toby Pohlen’s departure marks the latest in a series of exits that now total three co-founders leaving xAI, reducing the original founding team by half over three years. Remaining co-founders Yuhuai Wu and Jimmy Ba also stepped down earlier this month, highlighting leadership instability as the company prepares for its debut.
2. Musk’s Restructuring and Valuation
In response to the exodus, Elon Musk announced a company-wide reorganization aimed at boosting execution speed, acknowledging that some roles would be eliminated. This shake-up follows SpaceX’s all-stock acquisition of xAI at a $250 billion valuation, positioning the venture for a potential IPO.
3. Google’s Credit Support for TeraWulf Lease
Google provided the credit guarantee for TeraWulf’s newly signed 450 MW Fluid Stack lease, signaling its commitment to scaling power-backed AI infrastructure. The deal links Google’s financial backing to TeraWulf’s expansion of high-performance computing capacity on existing grid assets.