The final co-founder of Elon Musk’s artificial intelligence startup xAI, Ross Nordeen, has left the company, marking the complete departure of its original founding team. His exit signals a potential turning point for xAI, especially as it comes while Musk restructures his business empire ahead of a possible SpaceX Initial Public Offering (IPO).
Ross Nordeen was one of the 11 co-founders who launched xAI in 2023 alongside Elon Musk. Before joining xAI, he worked at Tesla and was considered a trusted member of Elon Musk’s inner circle. At xAI, Nordeen played a crucial role in executing Musk’s vision and was often described as his “right-hand” operator in managing day-to-day operations.
His departure follows a broader wave of exits within the company. Since early 2026, most of xAI’s co-founders, including key technical leaders, have left. With Nordeen’s exit, all 11 original co-founders are now gone, highlighting significant internal changes. This wave of departures points to broader structural shifts as Musk reorganizes the company.
A key driver of these changes is the integration of xAI into Musk’s wider business ecosystem. Earlier in 2026, SpaceX acquired xAI, bringing together Musk’s artificial intelligence, space, and social media ventures under one umbrella. This move is part of a broader strategy to unify technologies such as AI, satellite infrastructure, and computing power.
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The restructuring has led to leadership changes, layoffs, and team reorganizations. Some departments, particularly those focused on experimental AI tools like image and video generation, have reportedly been scaled back or refocused. These changes suggest Musk is narrowing xAI’s priorities as he prepares the company for its next phase.
At the same time, Elon Musk has been recruiting new talent from other AI firms to strengthen xAI’s capabilities. This indicates that while the original founding team has departed, the company is entering a new phase with a different leadership structure and a potentially revised strategy. As Musk consolidates his companies and prepares for a major IPO, xAI is being reshaped to fit into a broader vision that combines AI development with space infrastructure and global technology ambitions.
READ: Indian American entrepreneur Aman Gottumukkala joins xAI (March 16, 2026)
Meanwhile, Elon Musk is gearing up for a potential SpaceX IPO, which could become one of the largest public listings ever. Integrating xAI into SpaceX is considered a way to enhance the company’s valuation and strengthen its appeal to investors, positioning it as a combined AI and space technology powerhouse.
Despite its ambitious goals and high valuation, xAI has struggled to keep pace with competitors such as OpenAI and Anthropic. Musk has acknowledged that the company was “not built right” initially and has said it is being rebuilt from the ground up. The recent departures and restructuring efforts appear to be part of that rebuilding process.