xAI Co-founder Mass Exodus! Musk Publicly Apologizes: Company Had Problems Early On, Top Talent Didn't Even Get Interviewed

Elon Musk publicly apologized on X, acknowledging that xAI “was not built well from the start” and personally reviewing interview records to reconnect with previously rejected candidates, as key personnel at xAI continue to leave one after another. To date, 9 of the original 11 co-founders (excluding Musk) have departed, leaving only 2 still in position.
(Background: Musk drastically cut 500 employees at xAI—what’s the behind-the-scenes AI strategy?)
(Additional context: xAI engineers reveal that “no one at the company said no to me,” only to be fired by Musk.)

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• 2 of 11 Co-Founders Remain: Core Grok Developers Leave One After Another
• Former Employee: “xAI’s Flat Structure” Turns into Middle Management Suppression
• “Tesla Went Through the Same Thing”

On March 13, xAI experienced a mass resignation day. Co-founder Guodong Zhang confirmed on X that it was his last day at xAI. Another co-founder, Zihang Dai, had already announced his departure earlier that week. Haotian Liu, head of Grok Imagine, also announced leaving on the same day.

On the very day these three announced their departures, Musk posted a rare apology on X.

Musk stated that over the past few years, many talented people had been rejected offers from xAI, and some never even got interview opportunities. “My apologies.” He said he is now working with Human Capital co-founder Baris Akis to personally review past interview records and proactively contact potential candidates who had been rejected.

A few hours before this apology, Musk hinted at the situation in another reply. Responding to e/acc movement founder Guillaume Verdon (username Beff Jezos), Musk said: “xAI was not built well from the beginning, so we are rebuilding from the ground up. Tesla went through the same thing back in the day.”

Faced with large-scale personnel loss at xAI, Musk finally shows willingness to admit mistakes and make amends.

2 of 11 Co-Founders Remain: Core Grok Developers Leave One After Another

The talent drain at xAI has reached an unavoidable point. The company was founded with 11 co-founders (excluding Musk). So far, 9 have left, leaving only Manuel Kroiss and Ross Nordeen. The departed include Toby Pohlen, Jimmy Ba, Tony Wu, Greg Yang, Igor Babuschkin, Kyle Kosic, Christian Szegedy, and this week, Zihang Dai and Guodong Zhang.

Zhang Guodong’s departure is particularly notable. He directly reported to Musk and was responsible for two key products: Grok Code (AI programming agent) and Grok Imagine (AI image and video generation). Haotian Liu, head of Grok Imagine, also announced his departure on the same day, meaning the main leaders of both core products left simultaneously.

This personnel upheaval occurred after SpaceX completed its all-stock acquisition of xAI. In February, SpaceX merged with xAI at a valuation of $250 billion for xAI and a total valuation of $1.25 trillion, with SpaceX valued at $1 trillion. Prior to that, xAI had laid off about 500 employees and announced a shift from general AI to more specialized routes.

Former Employee: “xAI’s Flat Structure” Turns into Middle Management Suppression

On the same day Musk’s apology sparked widespread discussion, former xAI employee Benjamin De Kraker posted a detailed account on X, offering a concrete perspective on what “not built well” really means.

Here is an xAI story.

When I was first hired (entry-level) by xAI, I was extremely excited. I greatly admired Elon and what Grok could become.

I have a pretty cool AI following here on X. Some big names see my stuff, including Elon himself (at the time).

Lex, Beff, Andreessen,… https://t.co/wQE0oBC5Be

— Benjamin De Kraker (@BenjaminDEKR) March 13, 2026

De Kraker said that when he joined, xAI emphasized a “flat structure” and “employee initiative.” He leveraged his influence in AI on X to publicly solicit suggestions for improving Grok, which unexpectedly went viral and even caught the attention of John Carmack, co-founder of id Software, leading to a flood of suggestions.

However, the next day he received a threatening email from a supervisor, demanding he delete all posts, and his X account was suspended by the company.

He ended his post by echoing Musk’s words: “Everyone I knew at xAI has left.” He named the supervisor who threatened him as also having left, implying that middle management issues are not isolated.

De Kraker’s own departure was in February 2025. He posted about ranking AI model coding abilities on X, mentioning an unreleased Grok 3. When asked to delete the post, he refused and resigned, which attracted media attention.

His account aligns with other xAI incidents, such as:

• Former engineer Sulaiman Ghori describing an open culture where “no one said no”—and then being fired.
• Former engineer Li Xuechen accused of stealing Grok 4’s secrets and jumping to OpenAI, leading to a lawsuit seeking $7 million.
• Bloomberg reporting that Musk launched a larger team restructuring after the mass departure of co-founders.

Related reading: Chinese genius engineer’s self-destructive record: stole Musk’s xAI data and fled, reportedly blacklisted by OpenAI, Google, Meta, and others.

“Tesla Went Through the Same Thing”

Musk drew a parallel with Tesla’s early rebuilding experience, implying that the current turmoil at xAI is a necessary step toward a healthier organization. Tesla indeed underwent large-scale personnel changes during its production crisis and ultimately became a leader in electric vehicles. But the situations differ significantly: xAI faces fierce competition from OpenAI, Google DeepMind, Anthropic, and others, with a much narrower window for rebuilding compared to manufacturing.

Musk’s current strategies include two approaches: externally recruiting talent (revisiting interview records and contacting rejected candidates) and internally integrating resources via SpaceX (merging and coordinating computing power and engineering staff).

Whether the former can attract top AI researchers amid xAI’s damaged talent image remains uncertain; the effectiveness of the internal integration will only be clear once the new organization stabilizes and internal voices can be heard.