xAI fired the last co‑founder, and now only Elon Musk remains in the company.

Human resource dynamics at xAI startup: what’s happening and why

The artificial intelligence sector remains the most vibrant in the labor market due to rapid industry growth and constant investment inflows. That is why companies working on AI are forced to continually reshape their “human capital.”

1. The last co‑founder departure
In 2023 Elon Musk founded xAI. Since then the team has shrunk: mid‑month, from the original 11 co‑founders—including Musk himself—only three remained. Last week the final of ten partners who helped create the startup left the company – Ross Nordeen. This is evident from his status change on X: he was previously listed as an xAI employee.

2. Why changes are occurring
xAI’s restructuring is tied to preparing SpaceX for an IPO. This year, the aerospace company—also founded by Musk—has merged its earlier acquisitions of xAI and X (Twitter). Twitter was bought in 2022 for $44 million and will now be part of SpaceX, which plans a June IPO raising about $75 million. The funds will be invested in AI computing infrastructure: specialized satellites and data centers in low Earth orbit.

3. Ross Nordeen’s role
Nordeen, 36, was Musk’s “right hand” at xAI. He set the startup’s development priorities and ensured they were met. Before joining xAI he worked at Tesla, leading the autopilot team and data‑center operations for training software. His involvement stemmed from a friendship with Musk’s cousin James Musk. After Twitter’s acquisition Nordeen joined the “management landing” sent by Musk to reorganize.

A recent photo of him relaxing on X suggests he is now looking for new opportunities.

4. Overall scale of cuts
Since the start of the year xAI has lost eight co‑founders. This week Manuel Kroiss, who oversaw early large‑language‑model training and reported directly to Musk, left the company. Reforms began in February when many employees were fired or transferred. Even teams developing the video and image generator Grok Imagine and AI agent Macrohard were eliminated.

Musk admitted that xAI’s original structure was “misconfigured,” so a complete overhaul is needed. Nevertheless the company is actively recruiting new talent and willing to consider candidates who were previously rejected.

Briefly:

xAI is undergoing a large restructuring as part of SpaceX’s IPO preparation. The last co‑founder, Ross Nordeen, has left, and this week Manuel Kroiss also departed. Musk acknowledges the need for reorganization and is actively hiring new staff, even those previously turned down.