AI safety-focused investment company to be launched by XAI co-founder Babuschkin
xAI Continues to Pursue Ambitious AI Projects Despite Executive Departures
In a series of recent developments, Igor Babuschkin, a co-founder of Elon Musk's AI startup xAI, announced his departure from the company on Wednesday. This follows the resignation of Linda Yaccarino, the CEO of Musk-owned X, last month. Despite these changes, xAI remains active and is forging ahead with ambitious projects.
One of the most notable initiatives is the creation of a "purely AI software company" called Macrohard. The goal is to simulate software companies like Microsoft entirely through AI, demonstrating xAI's continued innovation and expansion in AI software development.
xAI's strategic moves extend beyond Macrohard. In early 2025, Musk and xAI made a $97.4 billion hostile bid to acquire OpenAI, the AI pioneer he co-founded before his 2018 departure. Though the bid was rejected by OpenAI's board and involved complex legal battles, it underscores xAI's aggressive ambitions in the AI sector.
In addition to this, xAI expanded in 2025 by acquiring sister company X Corp., the developer of the social media platform X (formerly Twitter). This move broadened xAI's technology and social media footprint.
Financially, xAI has secured over $12 billion in funding from major investors like Fidelity, BlackRock, and Sequoia Capital as of late 2024, enabling continued growth and development despite executive changes.
Before joining xAI, Babuschkin worked at Google's DeepMind and OpenAI. During his time at xAI, he created foundational tools for launching and managing training jobs, and later oversaw engineering across infrastructure, product, and applied AI projects. Babuschkin plans to launch an investment firm called Babuschkin Ventures, which will focus on AI safety research and startups developing AI technology.
Meanwhile, the competition among AI players such as OpenAI, Google, and Anthropic is intensifying, with these companies investing heavily in training and deploying advanced systems.
Robert Keele, xAI's legal head, resigned earlier this month, adding to the executive departures. Musk is currently dealing with similar departures at Tesla. The platform X was folded into xAI months before Linda Yaccarino's resignation.
In summary, despite Babuschkin and Yaccarino's departure, xAI is actively pursuing new AI initiatives (including Macrohard), engaging in high-profile acquisitions and litigation, and continuing to secure substantial funding to support its growth plans. Babuschkin's new venture, Babuschkin Ventures, will further contribute to the AI industry by focusing on AI safety research and startups developing AI technology.
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