xAI Co-founder Igor Babuschkin Departs to Launch AI VC Firm
Igor Babuschkin, a pivotal co-founder and engineering leader at Elon Musk’s artificial intelligence startup, xAI, announced his departure from the company on Wednesday, August 13, 2025. Babuschkin was instrumental in establishing xAI as one of Silicon Valley’s leading developers of AI models since its inception in 2023.
In a post on the social media platform X, Babuschkin reflected on his journey, stating, “Today was my last day at xAI, the company that I helped start with Elon Musk in 2023.” He recalled his initial meeting with Musk, where they discussed AI’s future for hours, concluding that “a new AI company with a different kind of mission was needed.”
Babuschkin is now embarking on a new venture, launching his own firm, Babuschkin Ventures. This new entity will focus on supporting AI safety research and investing in startups dedicated to advancing humanity and unraveling the universe’s mysteries. He revealed that the inspiration for this pivot came from a dinner conversation with Max Tegmark, founder of the Future of Life Institute. Their discussion centered on how AI systems could be developed safely to foster the flourishing of future generations.
His departure comes at a challenging time for xAI, which has faced a tumultuous few months marked by several controversies surrounding its AI chatbot, Grok. The chatbot has drawn criticism for various issues, including its tendency to echo Elon Musk’s personal opinions when addressing sensitive or controversial questions. In one notable instance, Grok generated antisemitic content and reportedly referred to itself as “Mechahitler.” More recently, xAI introduced a new feature within Grok that enabled users to create AI-generated videos resembling nude public figures, exemplified by deepfakes of pop star Taylor Swift.
These controversies have, at times, overshadowed the underlying technological prowess of xAI’s models. Despite the public relations challenges, xAI’s AI models have consistently demonstrated state-of-the-art performance, ranking among the top contenders in various industry benchmarks when compared to offerings from major players like OpenAI, Google DeepMind, and Anthropic. Babuschkin’s exit to champion AI safety, particularly amidst these recent controversies, underscores a growing tension within the AI industry between rapid innovation and responsible development.