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Two co-founders of Elon Musk's xAI resign, joining exodus

Half of xAI’s 12 co-founders have left amid regulatory probes over Grok’s deepfake content and just before SpaceX’s planned IPO, raising concerns about talent retention.

  • On Tuesday, Tony Wu, co‑founder of xAI, announced his resignation in a post on X and thanked Elon Musk `for the ride of a lifetime`.
  • Grok's image tool, which produced non-consensual explicit deepfake images including children, sparked consumer backlash and regulatory probes, prompting xAI to restrict image-generation features on X.
  • Tony Wu's exit adds to an exodus that already saw Igor Babuschkin leave in August, Greg Yang step back last month, and Christian Szegedy depart in February.
  • Last week, SpaceX acquired xAI, with documents viewed by CNBC valuing SpaceX at $1 trillion and xAI at $250 billion ahead of a potential IPO this year.
  • Wu framed his exit as `It's time for my next chapter` in a post that also said `It is an era with full possibilities: a small team armed with AIs can move mountains and redefine what's possible`; his LinkedIn shows prior roles at Google and OpenAI.
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se7en.ws broke the news in on Tuesday, February 10, 2026.
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