Musk Reorganizes xAI After Co-Founders Departure

Elon Musk has unveiled a significant restructuring at xAI following the departure of two key co-founders, Jimmy Ba and Yuhuai (Tony) Wu. On Wednesday, Musk shared an all-hands meeting video on his personal social platform X, where he announced major organizational changes aimed at facilitating rapid growth.

This announcement comes amidst SpaceX’s strategic merger with xAI to develop data centers in orbit. At the core of this restructuring is a recognition that as xAI accelerates its pace, so must its structure to maintain operational effectiveness and agility.

Musk emphasized, “As companies grow, especially quickly like xAI, the structure needs to evolve. And unfortunately, some people will have to move on.” He explained further, “Because we’ve reached certain scale, we’re organizing our company to be more effective at this scale.”

In his X update, Musk unveiled a new organizational chart for xAI, categorizing it into four primary teams. One of these is the Macrohard project, initiated in 2025 and now focusing on simulating computer use up to entire corporations’ models.

Musk described Macrohard as “our most important project because we are talking about: emulation of entire human companies.” He added, “When you look at the most valuable companies globally, their output is digital. Therefore, it should be possible to emulate any company where the output is digital. This will usher in an era of prosperity… It’s a big deal.”

XAI has also been instrumental in outpacing competitors in areas such as image and video generation as well as voice-based AI. Musk asserted, “If you are moving faster than anyone else, you will be the leader, and xAI is moving faster than anyone else.”

The CEO of Tesla noted that xAI’s Imagine tool generates an astounding 50 million videos per day and over 6 billion images in the past month. Over the last 30 days alone, these tools have serviced more than 6 billion monthly users of the X app.

In line with this expansion, Musk indicated that xAI is also planning to launch its X Money feature and X Chat app in the near future. This strategic push underscores the company’s ambitions for diversifying its services into financial and communication applications, positioning xAI at the forefront of technological innovation.