Several senior executives in xAI have successively resigned due to management and financial disputes! The finger directly points to Musk's advisor.

According to media reports citing sources, several executives of xAI, an artificial intelligence (AI) startup under Elon Musk's ownership, resigned after conflicts with his two closest advisors. The reason was their concerns about the management and financial situation of the company. The report pointed out that Elon Musk, who is also the CEO of Tesla, Inc. (TSLA.US), is the CEO of xAI and responsible for final decision-making, but the daily operations of xAI are overseen by two advisors, Jared Birchall and John Hering. However, some xAI executives internally questioned the way Jared Birchall and John Hering managed the company, believing there was no formal chain of command. Additionally, some departing xAI executives expressed concerns that some financial forecasts of the company were unrealistic. They also internally questioned the role of Musk's family office, Excession, in cash and accounting management at xAI. In response, Musk's lawyer Alex Spiro told the media: "Any insinuation of impropriety regarding the financial data is false and defamatory." He added that the company's finances were audited by PricewaterhouseCoopers (PwC). The report stated that a source close to xAI said the company was confident in its financial forecasts. An xAI spokesperson added that Musk "leads xAI with a strong vision and commitment to advancing AI for the benefit of humanity as his top priority." In recent months, several executives have left xAI, including Linda Yaccarino, former CEO of X Corporation, Mike Liberatore, CFO of xAI, Igor Babuschkin, who previously worked at DeepMind and OpenAI, and Robert Keele, the company's general counsel. Reportedly, Birchall, who has long overseen Musk's family office, played a key role in xAI's operations and financing, with investors including Andreessen Horowitz and Fidelity. John Hering's investment fund, Vy Capital, is also an investor in xAI. The report noted that disagreements between some executives and Musk's advisors on company management have escalated, even prompting Musk ally Antonio Gracias to meet with executives to discuss related issues. Antonio Gracias is the CEO and founder of Valor Equity Partners, which early invested in Tesla, Inc., and also supports xAI. Alex Spiro stated that the claim that Antonio Gracias was "mediating some fabricated disputes" was completely false. Since some executives have left, Valor Equity Partners has taken a larger role in xAI management. Antonio Gracias has been involved in crisis management at Tesla, Inc., such as production issues with the Model 3 sedan and Musk's acquisition of Twitter in 2022. After leaving the government efficiency department in the summer, Antonio Gracias has been more involved in corporate affairs. A spokesperson for Valor Equity Partners said: "xAI is in a super-scale expansion phase, which is certainly challenging, but we are very excited about its development trajectory and speed, which is exceptional." The spokesperson added that xAI is performing well in research, team, infrastructure, and financing. She also stated that companies supported by Valor Equity Partners typically grow rapidly and are "supporting Musk's deep personal involvement and hands-on leadership in his companies." Additionally, it was reported that xAI completed a $5 billion debt financing and another $5 billion strategic equity investment in July this year. SpaceX also plans to invest $2 billion in xAI. To keep up with competitors like OpenAI and Anthropic, xAI needs continuous financing and significant investment in data centers. A source familiar with xAI added that Musk's and other major investors' wealth should ensure that the company has the funds to meet long-term business needs. Alex Spiro, Musk's lawyer, told the media: "Any claim that xAI has financing issues is obviously false and defamatory market demand far exceeds supply." The report also stated that Tesla, Inc. shareholders are expected to vote on a proposal in November that would allow the company's board to invest an undisclosed amount in xAI.