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StocksMedium•13 February 2026•

1 min read

Mass Exodus at Elon Musk's xAI Casts Shadow Over SpaceX IPO Plans

Portrait of Elon Musk over a golden world map showing Tesla cars, factories, and a red downward trend line.

Half of the founding team at Elon Musk’s artificial intelligence startup, xAI, has reportedly resigned, marking a significant leadership vacuum. The departures include two co-founders and six senior AI researchers, according to reports from Fortune. This sudden drain of top-tier talent raises concerns regarding the operational stability of Musk's AI ventures and their long-term viability. Analysts suggest that these internal disruptions could potentially complicate the highly anticipated Initial Public Offering (IPO) of SpaceX. Investor confidence may be tested as Musk manages multiple high-stakes projects simultaneously amidst increasing competition in the AI sector. Furthermore, the news could indirectly weigh on Tesla (TSLA) shares as markets evaluate Musk's focus and resource allocation across his business empire.