Meet Manuel Kroiss: 10th co-founder who helped Elon Musk launch xAI is leaving ahead of IPO, here’s why

Elon Musk’s AI company, xAI, is going through a turbulent time as it has seen the exit of 9 of its co-founders. However, the company just can’t see problems ending, as another cofounder, Manuel Kroiss, who played an important role in building its AI systems, has stepped away.

The exit adds to a growing list of departures from the company’s original leadership team. Business Insider’s report states he “has told people he is leaving,” citing insiders with knowledge of the exit.

Manuel Kroiss was deeply involved in developing xAI’s core technology, especially its large language models. He helped train the AI systems and improve their coding abilities. Within the company, he was seen as a key technical expert.

With his departure, only one original cofounder, Ross Nordeen, remains alongside Elon Musk. Out of the 11 people who started xAI in 2023, 10 have now left. This level of turnover is unusual for a young tech company.

Internal struggles and conflicts

In recent months, the company has gone through layoffs, restructuring, and leadership changes. Since Elon Musk himself admitted that the company was “not built right” in the beginning and is now being rebuilt.

To fix things, Elon Musk has reportedly brought in talent from his other companies like Tesla and SpaceX. The goal is to stabilize operations and speed up AI development.

xAI’s ambitious plans amidst exits

Even with all the exits, xAI has big ambitions. The company is reportedly preparing for a public listing (IPO). It has also been linked closely with SpaceX, and the combined business could reach a massive valuation.

However, such instability in leadership raises concerns about it. Since companies usually aim for stability before going public, especially in a competitive field like AI.

What does this mean for xAI?

The departure of almost the entire founding team suggests deeper disagreements or challenges within the company. At the same time, Elon Musk’s approach shows he is willing to make big changes quickly to achieve long-term goals.

xAI is now competing with major players like OpenAI, Anthropic, and Google. Therefore, to race ahead of its competitors, it will need not just strong technology but also a stable team.

For now, the company is in a transformative phase. Therefore, how well it handles this period will decide its future in the fast-growing AI industry.