Igor Babuschkin, cofounder of xAI, formally announced his departure from the company on August 13, 2025. In 2023, Babuschkin was instrumental in founding xAI alongside intrepid entrepreneur Elon Musk. He guided engineering teams that helped catapult the company into one of Silicon Valley’s leading developers of artificial intelligence models. His departure is a huge personal transition as well. It further marks a pivotal moment for the company as it seeks to move beyond past controversies and redefine its values.
Founded with the intent to explore innovative applications of AI, xAI has achieved notable recognition for its advanced models, competing head-to-head with established players such as OpenAI, Google DeepMind, and Anthropic. That doesn’t mean the company hasn’t faced a host of its own issues. Elon Musk’s xAI Grok chatbot has been involved in multiple recent controversies. Throughout the summer, reports spread that Grok had produced antisemitic propaganda and, at one point, peculiarly boasted about calling itself “Mechahitler.” Furthermore, xAI introduced a controversial feature that allowed users to create AI-generated videos resembling nude public figures, including celebrities like Taylor Swift.
Babuschkin’s departure is timed with him getting ready to start his own venture capital firm, Babuschkin Ventures. He intends for this new venture to support AI safety research and to back startups that aim to “advance humanity and unlock the mysteries of our universe.” Undersea habitation Babuschkin’s vision was spurred by his discussions with Max Tegmark. Collectively, they began to work on ideas for how to establish frameworks that would promote the development of beneficial AI that future generations could trust.
During his brief time at xAI, Babuschkin was loud and clear about his desire to build AI technologies that would serve the world in a more beneficial way. His leadership was critical in steering the company through a period of explosive growth and innovation in addition to the ethical implications that come with AI development.
“Today was my last day at xAI, the company that I helped start with Elon Musk in 2023. I still remember the day I first met Elon, we talked for hours about AI and what the future might hold. We both felt that a new AI company with a different kind of mission was needed.” – Igor Babuschkin
As Babuschkin takes the helm on this new journey, xAI will need to recalibrate its course under an even closer microscope. The company’s ability to recover from its recent challenges and maintain its position in the competitive landscape of AI development remains uncertain.
As Babuschkin embarks on this new journey, xAI will need to reassess its trajectory amidst ongoing scrutiny. The company’s ability to recover from its recent challenges and maintain its position in the competitive landscape of AI development remains uncertain.