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xAI exodus: Why cofounders left, and Musk’s comeback plan

Published on: April 11, 2026, 10:39 p.m. | Source: The Economic Times

The reasons for the exit of eight cofounders of Elon Musk-led AI startup xAI are many, including SpaceX’s merger with xAI, exhaustion linked to Musk’s “extremely hardcore” work culture, internal pressure to rapidly improve AI model performance, and more attractive offers from rival firms. However, instead of slowing down from these exits, Musk is pushing ahead, making high-profile hires and reaching out to applicants whom he passed over earlier.

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