Elon Musk’s AI startup xAI has experienced a wave of high-level departures in recent months, sparking speculation about the underlying causes. According to new reporting from the Wall Street Journal, internal conflicts over management style and concerns about the company’s financial projections may be behind the exodus. Several key executives have left in quick succession, including Mike Liberatore, who served as chief financial officer for just three months before departing in July. His departure was particularly notable given that he had only joined in April and was soon after hired by OpenAI—Musk’s longtime rival, led by Sam Altman. Another prominent exit was that of Robert Keele, the company’s general counsel, who left in early August after less than a year on the job. In a LinkedIn post, Keele praised the team and described the work as a “dream” and “the adventure of a lifetime,” but also hinted at deeper issues, stating there was “daylight between our worldviews.” Linda Yaccarino, former CEO of X—Musk’s social media platform and the main interface for xAI’s chatbot Grok—also stepped down in July after nearly two years in the role. She credited Musk with entrusting her with protecting free speech and turning the company around, but did not elaborate on her reasons for leaving. The Journal’s report cites unnamed sources familiar with the matter, suggesting that some executives left after disagreements with two of Musk’s closest allies: Jared Birchall and John Hering. These individuals oversee daily operations at xAI while Musk, as CEO, retains final decision-making authority. According to the sources, some executives felt there was no clear chain of command and clashed with Birchall and Hering over how the company was being run. Others reportedly raised concerns about the realism of xAI’s financial forecasts. Jared Birchall, often seen as Musk’s right-hand man, holds leadership roles across Musk’s ventures, including CEO of Neuralink and advisor at xAI. Alex Spiro, Musk’s attorney, dismissed the claims of internal disputes and financial impropriety as false and defamatory. A spokesperson for xAI told the Journal that Musk leads the company with “unwavering vision and commitment,” prioritizing the advancement of AI for humanity. The turmoil at xAI reflects broader instability in the high-stakes AI race. While Meta continues to aggressively recruit top AI talent with high salaries, a June report found its retention rate lagged behind Anthropic. OpenAI and DeepMind have also faced talent losses, with some engineers moving to Anthropic. Compounding the challenge is the ongoing public feud between Musk and Altman, which has led to a legal battle that has drained resources from both sides. In August, xAI sued a former engineer who joined OpenAI, alleging trade secret theft—further underscoring the competitive and contentious environment shaping the industry.