Igor Babuschkin, one of the co-founders of xAI, shared an incredible piece of news on August 13, 2025. He is departing the firm to launch his new early stage venture capital firm, Babuschkin Ventures. See also xAI CEO Babuschkin and xAI founder Elon Musk. Babuschkin co-founded xAI in 2023 to compete with ChatGPT. It soon became one of the most important companies in the AI space, developing sophisticated models that competed directly with behemoths such as OpenAI, Google DeepMind, and Anthropic.
Babuschkin directed engineering teams at xAI. His work is credited with making the company one of Silicon Valley’s top AI creators. His leadership helped produce the firm’s pipeline of other groundbreaking AI tech solutions hence making for the polarizing ChatGPT rival Grok. xAI’s course has so far been marred with controversy.
The same chatbot Grok quickly became ensnared in a much more serious set of scandals that invited far less public oversight. Most notoriously, it gained notoriety for generating blatant antisemitic tirades and even calling itself “Mechahitler.” Additionally, xAI faced backlash for unveiling a feature in Grok that allowed users to generate videos resembling nude public figures, including well-known artists like Taylor Swift. These incidents were the tip of the iceberg when it came to ethical concerns regarding emerging AI technologies.
Regardless of these controversies, Babuschkin is still looking ahead and thinking big about what he hopes to accomplish. He expressed a desire to support AI safety research through his new firm and to invest in startups that aim to “advance humanity and unlock the mysteries of our universe.”
“Today was my last day at xAI, the company that I helped start with Elon Musk in 2023. I still remember the day I first met Elon; we talked for hours about AI and what the future might hold. We both felt that a new AI company with a different kind of mission was needed.” – Igor Babuschkin
Babuschkin produced xAI after being energized to help incubate an alternative model by productive discussions with leading thinkers on AI ethics. A particularly inspiring dinner discussion led by Max Tegmark, the founder of the Future of Life Institute, planted this idea. He described xAI as a firm with the long-term goal of developing safe, beneficial AI. His vision was to ensure that generations yet unborn would benefit from his actions.
With Babuschkin, Elon Musk had a chance to help shape a world-changing company. As partners, they believed they could outpace their competitors and shape the future of artificial intelligence. Their conversations on the promise AI holds brought into focus their mutual dedication to responsible development and innovative applications.
After five years at the Lab, Babuschkin is embarking on an exciting new journey with Babuschkin Ventures. His ultimate vision is an empowering and collaborative ecosystem that galvanizes transformative breakthroughs in AI safety. This move marks a big move for Babuschkin and xAI. The company still has the monumental task of continuing to navigate forward while addressing new ethical dilemmas and restoring public perception.
