Musk reorganized xAI after the merger with SpaceX and before the massive IPO.

date
12/02/2026
Billionaire Elon Musk is merging his artificial intelligence startup xAI with his rocket company SpaceX, and has made comprehensive changes to the management team of the company ahead of what is planned to be possibly the largest IPO ever. Before the restructuring was announced on Wednesday, several co-founders of the three-year-old artificial intelligence company had recently resigned one after another, leaving only half of the original 12 co-founders. This has raised questions about stability while Musk pushes for comprehensive competition with OpenAI and Google. "We are organizing because we have reached a certain scale. We are organizing the company to be more effective at this scale. When this happens, naturally some people are more suitable for the early stage of the company, but not so much for the later stage," Musk said at an xAI all-hands meeting, according to a video clip posted by the company on X. Previously, co-founders Tony Wu and Jimmy Ba announced on social media that they had resigned from the artificial intelligence company co-founded by Musk this week. According to Similarweb data from January, while the traffic on xAI's chatbot website Grok.com has been steadily increasing, it still ranks third globally, accounting for only 3.4% of artificial intelligence chatbot traffic, with ChatGPT and Google's Gemini occupying 64.5% and 21.5% respectively.