Elon Musk's AI venture xAI is losing its founding team at a troubling pace, with co-founder Tony Wu now the newest departure, according to CNBC.

What's happening?

On Feb. 9, Wu posted on X that he was leaving the company. 

"It's time for my next chapter," Wu wrote. "It is an era with full possibilities: a small team armed with AIs can move mountains and redefine what's possible."

Wu joins a growing list of original team members who have left. Co-founders Igor Babuschkin, Kyle Kosic, and Christian Szegedy have all moved on. Greg Yang revealed in January that he plans to step back as he deals with Lyme disease.

Musk created xAI in 2023 with 11 co-founders, aiming to challenge OpenAI and Google. The company originally said its mission was to "understand the true nature of the universe."

"Why are a lot of people leaving the xai team?" asked X user @orastudios1, echoing a question many onlookers are raising.

Why are a lot of people leaving the xai team?

— ora. studios by Roland Bros. (@orastudios1) February 10, 2026

Grok, the AI assistant and image creator built by xAI, has drawn criticism lately. Some users have weaponized it to produce and circulate nonconsensual, sexualized images based on actual adults. Grok users have also used the AI to generate child sexual abuse materials (CSAM). 

Investigators in several countries have since launched investigations.

Meanwhile, SpaceX, Musk's rocket venture, has now taken over xAI in what's being called the largest merger in history. According to documents CNBC reviewed, the deal puts a $1 trillion price tag on SpaceX and a $250 billion one on xAI.

This follows an earlier move by Musk to fold xAI into his social platform X through a separate deal worth billions made public in March of last year.

Why is xAI's instability concerning?

AI companies like xAI demand massive amounts of energy and water to run their data centers. As these firms grow and consolidate through deals worth hundreds of billions, so does their environmental footprint. Training and running AI models requires enormous computing power, which means more electricity is drawn from grids that still rely heavily on polluting energy sources.

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The generation of sexualized deepfakes and CSAM adds another layer of concern. When AI tools are deployed without proper safeguards, everyday people pay the price. Their images are exploited, and they face a digital environment with fewer protections for their safety and privacy.

What's being done about AI's unchecked growth?

Regulators around the world are stepping up. Investigations into the use of Grok for malicious purposes are underway in multiple countries. Policymakers are working on new rules to hold AI companies accountable for the harm their products cause.

You can make your voice heard, too. Contact your elected officials and push for stronger AI oversight, including rules that require energy transparency from tech companies and protections against AI-generated abuse.

If you or someone you know is in need of support as a result of experiencing a form of sexual assault or abuse, please visit RAINN.org or call the National Sexual Assault Hotline at 1-800-656-4673.

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