Recently, Tesla CEO Elon Musk's AI company xAI has faced a management crisis, with several executives resigning due to dissatisfaction with the company's management approach and financial status. Currently, the daily operations of xAI are managed by two of Musk's close advisors, Jared Birchall and John Hering, while all major decisions still require Musk's approval.
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According to sources, some executives at xAI raised objections during internal meetings against the way Birchall and Hering, representing Musk, were managing the company, stating that the company lacked a clear management structure. Additionally, these executives expressed concerns about the company's financial forecasts, believing some of them were unrealistic, and questioned the role of Musk's family office, Excession, in managing the company's finances.
Musk's lawyer stated that any allegations of financial misconduct are false, pointing out that the company's financial statements are audited by PwC. Despite this, an insider close to xAI said the company remains confident in its financial forecasts.
Over the past few months, several executives have resigned from xAI, including Linda Yaccarino, former CEO of X, Mike Liberto, former CFO, and Robert Kiel, former general counsel. These departures reflect the challenges that Musk's management style poses to the company's operations, making his vision of establishing a world-class AI company more complex.
In this context, Musk's ally Antonio Gracias has also become involved in company affairs, attempting to resolve the conflicts within the management. Gracias is the CEO of the private equity firm Valor Equity Partners and previously helped Tesla deal with some crises.
An xAI spokesperson stated that Musk has shown a strong vision in leading the company, emphasizing that advancing AI for the benefit of humanity is the company's core mission. Valor also stated that despite the challenges faced during rapid expansion, they remain confident in the company's future development.
