Elon Musk’s xAI co-founder Toby Pohlen steps down after three years amid IPO push

Toby Pohlen, one of xAI’s original co-founders, officially announced his exit on Thursday, parsing the team's work ethic and planning time for reflection of his next steps. The recent departure signals a major shift in company strategy in the fast-moving AI sector. The co-founder of xAI took X to announce his decision to depart the company after three years.

He said: “Three years, thousands of PRs and a million jokes. Today was my last day to the team: you rock, no one burns the midnight oil better. To @elonmusk, thanks for taking me on board. I ‘ve learnt about execution, speed and product perfectionism…” 

Elon Musk commented in his response, saying: “Thanks for helping to get xAI to where it is.”

Following Pohlen’s departure, Elon Musk announced a restructuring of xAI to improve execution speed. While this process necessitates parting ways with some employees, it demonstrates the company’s strategic response to a rapidly changing market. This move follows SpaceX’s all-stock acquisition of xAI, which valued the deal at $125 billion, underscoring Musk's commitment to xAI’s future.

In line with his recent departure, Pohlen did not disclose any specific future plans. He mentioned taking time off to reset and document his experiences, indicating continued dedication to the tech industry. His exit marks a significant transition for the leadership team as xAI navigates its new strategic direction within the sector.