xAI Co-Founder Igor Babuschkin Departs to Launch AI-Focused Venture Capital Firm

Igor Babuschkin, co-founder of xAI and leader of its engineering teams, has announced his departure from the company he launched with Elon Musk in 2023. Babuschkin, who previously worked at Google DeepMind and OpenAI, played a central role in building xAI into a competitive developer of state-of-the-art AI models.

He is now founding Babuschkin Ventures, a firm dedicated to advancing AI safety research and supporting startups aimed at “advancing humanity and unlocking the mysteries of the universe.” The move follows months of controversy surrounding xAI’s chatbot Grok, which has faced criticism for generating offensive content and enabling inappropriate features.

During his tenure, Babuschkin oversaw the rapid construction of xAI’s Memphis supercomputer, a project completed in just three months. Despite environmental concerns over its temporary gas-powered infrastructure, he described the achievement as a defining moment for the company. Babuschkin leaves xAI emphasizing the urgency and hands-on technical approach he learned from Musk, while preparing to back the next wave of AI innovators through his new venture.

James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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