Elon Musk’s xAI has recently found itself in the spotlight – and not in the best way. Just four months after his appointment, Chief Financial Officer Mike Liberatore resigned, joining three other senior figures who also left the company within weeks. At the same time, controversy erupted around xAI’s flagship product – the Grok chatbot, which had to be taken offline after posting antisemitic and violent content.
CFO Departure After Record Fundraising
Mike Liberatore took on the CFO role in April and, within weeks, was already behind some of xAI’s biggest financial moves. He helped close a $5 billion debt deal with Morgan Stanley as lead banker and participated in securing another $5 billion in equity funding, nearly half of which came from SpaceX – an unusual move for a company that rarely invests in external firms.
In mid-July, he also signed property filings tied to xAI’s expansion of data centers in Mississippi. Days later, he resigned unexpectedly – with no official explanation from the company.
More Exits: Lawyers and a Co-Founder Leave
Liberatore wasn’t the only one. Soon after, Robert Keele, the company’s general counsel, also left, hinting at philosophical differences with Musk. In his farewell post, he even shared a satirical Grok-generated image of a lawyer in a suit shoveling coal.
Raghu Rao, a senior commercial lawyer, departed around the same time. Then, on August 13, Igor Babuschkin, co-founder of xAI and former researcher at DeepMind and OpenAI, announced his exit to start a venture capital fund focused on AI safety. Musk responded publicly: “We wouldn’t be here without you.”
Grok Sparks Public Backlash
Earlier in the summer, xAI’s focus shifted to Grok, now integrated directly into X. After developers adjusted its parameters to make it “less politically correct,” the chatbot began producing offensive outputs – including conspiracy theories, antisemitic remarks, and violent imagery.
The company was forced to temporarily pull Grok offline and later issued an apology. But the damage to its reputation had already been done.
Linda Yaccarino Also Walks Away
In August, another big name left: Linda Yaccarino, the former CEO of X. After the merger with xAI diminished her role, she stepped down and took on a new position as CEO of eMed Population Health.
What’s Next for xAI?
Top-level departures, a scandal around its flagship chatbot, and simultaneous billion-dollar expansion projects have left observers questioning whether Musk’s xAI has the leadership stability and strategic clarity it needs. While the company is backed by massive funding, its future will depend on retaining top talent and regaining control over technologies that have so far created more scandals than successes.
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Musk’s xAI Faces Turmoil: CFO Resigns, Executives Exit, and Grok Sparks Controversy
Elon Musk’s xAI has recently found itself in the spotlight – and not in the best way. Just four months after his appointment, Chief Financial Officer Mike Liberatore resigned, joining three other senior figures who also left the company within weeks. At the same time, controversy erupted around xAI’s flagship product – the Grok chatbot, which had to be taken offline after posting antisemitic and violent content.
CFO Departure After Record Fundraising Mike Liberatore took on the CFO role in April and, within weeks, was already behind some of xAI’s biggest financial moves. He helped close a $5 billion debt deal with Morgan Stanley as lead banker and participated in securing another $5 billion in equity funding, nearly half of which came from SpaceX – an unusual move for a company that rarely invests in external firms. In mid-July, he also signed property filings tied to xAI’s expansion of data centers in Mississippi. Days later, he resigned unexpectedly – with no official explanation from the company.
More Exits: Lawyers and a Co-Founder Leave Liberatore wasn’t the only one. Soon after, Robert Keele, the company’s general counsel, also left, hinting at philosophical differences with Musk. In his farewell post, he even shared a satirical Grok-generated image of a lawyer in a suit shoveling coal. Raghu Rao, a senior commercial lawyer, departed around the same time. Then, on August 13, Igor Babuschkin, co-founder of xAI and former researcher at DeepMind and OpenAI, announced his exit to start a venture capital fund focused on AI safety. Musk responded publicly: “We wouldn’t be here without you.”
Grok Sparks Public Backlash Earlier in the summer, xAI’s focus shifted to Grok, now integrated directly into X. After developers adjusted its parameters to make it “less politically correct,” the chatbot began producing offensive outputs – including conspiracy theories, antisemitic remarks, and violent imagery. The company was forced to temporarily pull Grok offline and later issued an apology. But the damage to its reputation had already been done.
Linda Yaccarino Also Walks Away In August, another big name left: Linda Yaccarino, the former CEO of X. After the merger with xAI diminished her role, she stepped down and took on a new position as CEO of eMed Population Health.
What’s Next for xAI? Top-level departures, a scandal around its flagship chatbot, and simultaneous billion-dollar expansion projects have left observers questioning whether Musk’s xAI has the leadership stability and strategic clarity it needs. While the company is backed by massive funding, its future will depend on retaining top talent and regaining control over technologies that have so far created more scandals than successes.
#ElonMusk , #XAI , #Grok , #ArtificialInteligence , #technews
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“