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And then there were none: Musk's last xAI cofounder is out

Grace Kay
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⚡ Quantum Brief
Elon Musk’s AI startup xAI has lost its final original cofounder, Ross Nordeen, marking the exit of all 11 founding members since its 2023 launch. Nordeen, a former Tesla Autopilot manager, served as Musk’s right-hand operator at xAI. Musk admitted xAI was "not built right" and is now "rebuilding from the foundations up," following a wave of departures tied to SpaceX’s February acquisition ahead of its historic IPO. The restructuring includes layoffs and project cancellations. Eight cofounders left since January, including AI model leads, as SpaceX’s merger triggered leadership turnover. Musk is recruiting replacements, hiring nearly a dozen new staff, including senior engineers from AI coding firm Cursor. Despite a $250 billion valuation, xAI lags behind rivals like OpenAI in scale. Recent cuts hit teams behind Grok Imagine and Macrohard, its AI agent project, signaling shifting priorities under Musk’s leadership. Nordeen’s departure follows a pattern of high-profile exits, raising questions about talent retention amid Musk’s aggressive reorganization and SpaceX’s impending IPO, which may divert focus from xAI’s long-term AI ambitions.
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And then there were none: Musk's last xAI cofounder is out

Elon Musk has said xAI is being "rebuilt from the foundations up." Adrees Latif/Reuters 2026-03-28T15:03:53.167Z Share Copy link Email Facebook WhatsApp X LinkedIn Bluesky Threads lighning bolt icon An icon in the shape of a lightning bolt.

Impact Link Save Saved Read in app Loading audio narration... This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in. Elon Musk started xAI with 11 cofounders in 2023. The last remaining one, Ross Nordeen, has now exited the company. Musk recently said xAI was not built right and that he's reorganizing it. AI-generated summary Summaries are generated by an AI model trained on Business Insider's articles. AI may make mistakes or provide inaccurate/incomplete information. We're unable to load that answer right now. Please try again. Why did Ross Nordeen leave xAI? How does SpaceX's IPO affect xAI? How do AI companies attract top talent? What challenges do AI startups face today? What is the impact of Musk's leadership style? The last of Elon Musk's original team of xAI cofounders has cleared out. Ross Nordeen, one of the 11 who helped build the company alongside Elon Musk, left the company this week, according to people with knowledge of his departure. Nordeen has also lost the badge on X that identifies him as an xAI employee.His exit comes as Musk reorganizes xAI and preps for a blockbuster initial public offering of his rocket company SpaceX, which acquired the artificial intelligence startup in February. The 36-year-old Nordeen reported directly to Musk at xAI and served as his right-hand operator, coordinating priorities and driving execution across the company, insiders said.Nordeen, a Michigan Tech grad, followed Musk from Tesla to cofound the AI startup in 2023. At Tesla, Nordeen was a technical program manager on the Autopilot team and worked on building out data centers to train Tesla's Full Self-Driving system, according to a 2021 organizational chart viewed by Business Insider. Every time Grace publishes a story, you'll get an alert straight to your inbox! Stay connected to Grace and get more of their work as it publishes. Sign up By clicking "Sign up", you agree to receive emails from Business Insider. In addition, you accept Insider's Terms of Service and Privacy Policy. Nordeen is a longtime friend of Musk's cousin, James Musk, according to Walter Isaacson's biography of the billionaire. Nordeen was also one of a few dozen Tesla and SpaceX engineers who helped Musk coordinate large-scale cuts at Twitter after he took over the company in 2022.Representatives for xAI and Nordeen did not immediately respond to a request for comment. Elon Musk’s AI ambitions Exclusive A 10th cofounder is leaving xAI. Elon Musk has just one more left. Spotted in the wild: Our first look at the X Money debit card Musk is rolling out Lawsuit against Elon Musk's xAI alleges Grok created sexualized deepfakes of 3 minors Exclusive The xAI exodus: Two more cofounders leave — and Musk says he's rebuilding XAI has lost eight cofounders since January, including Manuel Kroiss, Guodong Zhang, Zihang Dai, Toby Pohlen, Jimmy Ba, Tony Wu, and Greg Yang. Kroiss, who led pretraining, which helps train the company's AI models on large datasets and reported directly to Musk, left earlier this week.Most of the departures began shortly after SpaceX's merger with xAI ahead of the IPO that could be the most valuable in history. In February, Musk reorganized xAI and unveiled a new structure. Since then, many of the leaders Musk put in charge of key projects — from the company's coding tool to image generation — have left the company.XAI has gone through several restructurings since and has been in flux, shedding dozens of employees over the course of the last few months after the company cut portions of its teams working on its video and image generation tool, Grok Imagine, and Macrohard, its AI agent project earlier this year. The company is one of the best-funded players in the AI race and has reached a reported valuation of around $250 billion, but it trails behind major players like OpenAI and Anthropic when it comes to scale and reach.Musk said earlier this month that "xAI was not built right first time around, so is being rebuilt from the foundations up." He has also said the company is actively recruiting new talent and looking at candidates who were previously passed over. The company has brought on nearly a dozen recruits in the last few weeks, including two senior leaders from AI coding company Cursor, Andrew Milich and Jason Ginsberg.Do you work for xAI or have a tip? Contact this reporter via email at gkay@businessinsider.com or Signal at 248-894-6012. Use a personal email address, a nonwork device, and nonwork WiFi; here's our guide to sharing information securely.

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