Musk pledges to rebuild xAI as another co-founder departs

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Elon Musk arrives at federal court on March 4, 2026 in San Francisco, Calif.Elon Musk arrives at federal court on March 4, 2026 in San Francisco, Calif. Photo by Josh Edelson/Getty Images

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Elon Musk said he intends to rebuild his artificial intelligence startup, xAI, after a series of departures sparked uncertainty about the company’s employee turnover and trajectory.

Financial Post

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“xAI was not built right first time around, so is being rebuilt from the foundations up,” Musk said in a post on his X social media platform Thursday.

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xAI was not built right first time around, so is being rebuilt from the foundations up.

Same thing happened with Tesla.

— Elon Musk (@elonmusk) March 12, 2026

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The announcement coincides with more high-profile exits from xAI following its merger last month with Musk’s SpaceX. Guodong Zhang, an xAI co-founder who oversaw its image generation product, announced Thursday that he has departed the company. Haotian Liu, who worked closely with Zhang, has also left xAI, citing burnout.

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Another founding member, Zihang Dai, is also no longer at the company, according to a Business Insider. Dai and xAI did not respond to requests for comment.

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The rapid exits mean that no more than three of the 12 original xAI co-founders, including Musk, are left at the three-year-old company.

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On Thursday, Musk hired two senior employees from Cursor, a leading AI coding startup that is currently in fundraising discussions at a US$50 billion valuation. Musk admitted at a conference earlier this week that xAI is behind on coding, a key focus for rivals like OpenAI and Anthropic PBC.

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Managers at both SpaceX and Tesla have been asked to review the work of xAI employees, and have fired some of them, the Financial Times reported, citing people familiar with the matter.

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Musk has also been working on a hiring push with Baris Akis, a close ally who’s leading talent recruitment at xAI.

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“Many talented people over the past few years were declined an offer or even an interview at xAI. My apologies,” Musk posted on X. “Baris and I are going through the company interview history and reaching back out to promising candidates.”

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Many talented people over the past few years were declined an offer or even an interview @xAI. My apologies.@BarisAkis and I are going through the company interview history and reaching back out to promising candidates. https://t.co/tvhipa1lu1

— Elon Musk (@elonmusk) March 13, 2026
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