All original co-founders have now departed Elon Musk’s artificial intelligence startup, xAI, as the company undergoes a major overhaul and integration with SpaceX. According to reporting from Business Insider, Manuel Kroiss and Ross Nordeen – the last two remaining from the original team of eleven – have left the company this month.
Leadership Shakeup and Rebuild
The departures follow Musk’s recent admission that xAI “was not built right” initially, leading to a complete restructuring. The AI venture has now been absorbed into SpaceX, consolidating xAI, SpaceX, and the social media platform X (formerly Twitter) under a single corporate structure. This move comes as SpaceX prepares for a potential initial public offering (IPO).
Roles and Backgrounds of Departing Founders
Both Kroiss and Nordeen reported directly to Musk. Kroiss led xAI’s pretraining efforts, while Nordeen served as a close aide to Musk, notably implementing workforce reductions at Twitter following Musk’s 2022 acquisition of the platform. Nordeen previously worked at Tesla before joining xAI.
Context and Implications
The complete turnover of xAI’s original leadership suggests a deliberate shift in direction under Musk’s control. This restructuring may reflect a desire to streamline operations, align the AI efforts more closely with SpaceX’s strategic goals, or consolidate decision-making power. The timing ahead of SpaceX’s potential IPO may also indicate an effort to present a unified and tightly controlled corporate structure to investors.
The exodus of all founding members raises questions about the long-term stability and direction of xAI, particularly given Musk’s aggressive management style and rapid restructuring patterns across his various ventures. The company has not yet responded to a request for comment.
The final departure of xAI’s co-founders underscores Musk’s willingness to overhaul projects to align with his vision, even at the expense of continuity and institutional knowledge. This restructuring could accelerate the integration of AI into SpaceX’s broader operations, but also introduces significant risk as the company rebuilds from the ground up.
