Quick Brief
- Six of xAI’s 12 founding members have left since mid-2024, including two co-founders who resigned February 9-10, 2026
- Elon Musk called the departures “push, not pull,” signaling intentional restructuring into four core product divisions
- SpaceX acquired xAI for $250 billion in early February 2026, creating a $1.25 trillion combined entity
- xAI leased 25,000 square feet in Bellevue, Washington, positioning near OpenAI’s expanded Seattle-area presence
Elon Musk’s artificial intelligence venture is hemorrhaging senior talent at an alarming rate half its founding team has now walked out the door. The exodus includes two co-founders who announced their departures within 48 hours this week, triggering fresh questions about internal stability as the company integrates with SpaceX. Musk insists the changes reflect strategic pruning, not a company in crisis.
The Exodus: Who Left and When
Tony Wu and Jimmy Ba, both xAI co-founders since the company’s 2023 inception, resigned February 9-10, 2026. Wu led engineering teams while Ba oversaw research initiatives. Their exits punctuate a troubling 18-month pattern that has seen six of the company’s 12 original co-founders depart.
At least nine engineers total have publicly announced departures in recent weeks. Shayan Salehian, who worked on product infrastructure and model behavior, stated he was leaving to launch a new venture. Vahid Kazemi wrote publicly before his February exit, expressing frustration with the state of AI research.
Multiple departing engineers indicated plans to “start something new,” though they disclosed no specifics about future ventures. The wave of exits has sparked speculation about internal tensions, though xAI maintains operations continue normally.
Musk’s Response: “Push, Not Pull”
Musk characterized the departures as intentional restructuring rather than voluntary resignations, posting on X: “xAI was reorganized a few days ago…This unfortunately required parting ways with some people”. He announced a reorganization into four core divisions during a Tuesday night all-hands meeting that he unusually published as a 45-minute video on X.
The restructuring creates four product-focused teams: Grok’s chatbot and voice product, Coding tools, Imagine video generation, and Macrohard, described as an AI software company operated by digital agents. The public all-hands meeting, released February 11, 2026, included discussion of space-based AI infrastructure and long-term technical ambitions.
Despite having over 1,000 employees, xAI has not disclosed how the departures will affect specific projects or timelines. The company continues development of its Grok AI chatbot and maintains operations of its Colossus supercomputer clusters.
The SpaceX Mega-Deal
SpaceX acquired xAI in early February 2026 in a transaction valuing the combined entity at approximately $1.25 trillion. Reuters reported the deal closed February 2, 2026, marking one of the largest technology mergers in history.
The merger unites SpaceX’s space infrastructure capabilities with xAI’s artificial intelligence development. Bloomberg reported that the combined company is preparing for a potential public offering later in 2026, though no specific timeline has been announced.
The acquisition comes as xAI expands its AI supercomputing infrastructure and develops consumer-facing products including the Grok chatbot. SpaceX’s existing satellite network and launch capabilities provide potential infrastructure advantages for AI model training and deployment.
Bellevue Expansion: Planting a Flag Near OpenAI
xAI leased approximately 25,000 square feet at Lincoln Square South in downtown Bellevue, Washington, according to city records and local reporting. The full-floor space positions xAI in one of the region’s fastest-growing AI hubs.
The Bellevue location places xAI near OpenAI, which has expanded its local footprint to nearly 300,000 square feet in the Seattle area. GeekWire reported that the lease was signed in early February 2026, with the company expected to occupy the space in coming months.
SpaceX already employs approximately 2,000 workers locally, primarily focused on Starlink satellite development. The xAI expansion signals continued investment in the Pacific Northwest as a technology hub, joining other AI companies establishing regional presence.
What the Departures Mean
The exits represent a significant talent drain for a company competing in the rapidly evolving AI sector. Six departures from a 12-person founding team within 18 months is an unusually high attrition rate for a well-funded startup.
However, with over 1,000 total employees, the departures affect less than 1% of xAI’s workforce. The company continues to operate its core AI infrastructure and product development efforts.
The timing coincides with major corporate changes, the SpaceX acquisition and four-division reorganization suggesting the departures may be linked to strategic direction shifts rather than isolated incidents. Musk’s “push, not pull” framing indicates at least some exits were company-initiated.
Industry observers note that founding team departures often occur during transitions from startup to larger organizational structures. Whether xAI can maintain technical momentum while absorbing these leadership changes remains to be seen.
Frequently Asked Questions (FAQs)
Why are xAI engineers leaving in February 2026?
Six of xAI’s 12 co-founders have departed since mid-2024, including Tony Wu and Jimmy Ba who resigned February 9-10, 2026. Elon Musk characterized the departures as part of an intentional reorganization into four product divisions, stating on X that the company “required parting ways with some people” during the restructuring.
What is Elon Musk’s “push, not pull” comment about?
Musk wrote on X that “xAI was reorganized a few days ago” and characterized the departures as company-initiated rather than voluntary resignations. He announced a reorganization into four core divisions Grok chatbot/voice, Coding tools, Imagine video, and Macrohard AI agents during a Tuesday night all-hands meeting posted publicly on February 11, 2026.
How much did SpaceX pay to acquire xAI?
SpaceX acquired xAI in a transaction that values the combined entity at approximately $1.25 trillion, according to Reuters and Bloomberg reporting from February 2026. The deal closed in early February 2026 and represents one of the largest technology mergers in history.
Where is xAI opening its new office?
xAI leased approximately 25,000 square feet at Lincoln Square South in downtown Bellevue, Washington, according to GeekWire and local business publications. The February 2026 lease places xAI near OpenAI’s 300,000-square-foot Seattle-area presence in a growing Pacific Northwest AI corridor.
Will the combined SpaceX-xAI go public in 2026?
Bloomberg reported that the combined SpaceX-xAI entity is preparing for a potential initial public offering later in 2026, though no specific timeline has been officially announced. The $1.25 trillion valuation would make it one of the largest IPOs in history if it proceeds.
How many employees does xAI currently have?
xAI employs over 1,000 people as of February 2026, meaning the nine recent departures represent less than 1% of total headcount. However, the exits disproportionately affected the founding team six of 12 original co-founders have now left the company.
What products is xAI currently building?
xAI’s four core product divisions include Grok chatbot and voice assistant, Coding tools, Imagine video generation, and Macrohard described as an AI software company operated by digital agents. The company operates Colossus AI supercomputer clusters and continues developing consumer-facing AI products.
Who are the co-founders who left xAI?
Tony Wu resigned February 9, 2026, and Jimmy Ba left February 10, 2026. Previous departures include Kyle Kosic, Christian Szegedy, Igor Babuschkin, and Greg Yang, bringing the total to six of the original 12 co-founders.
