xAI Announces Restructuring Following Co-Founder Departures; Q4 X App Engagement Surges

CEO Elon Musk announced a restructuring of xAI following the exits of co-founders Jimmy Ba and Tony Wu, with the company reorganized into four core areas: Grok chatbot/voice, Coding, Imagine video, and Macrohard. Aman Madaan leads Grok, Manuel Kroiss the coding team, Guodong Zhang video and coding, and Toby Pohlen Macrohard. The company is aggressively hiring and expanding its Memphis data center complex, with a third building to bring compute capacity near 2 gigawatts and a $20 billion investment, including 10,000–20,000 GB300 systems. On X, product leadership reported 1 billion active users, with January engagement the best month ever (+55% daily time). The platform now generates about $1 billion in annual recurring revenue and will launch a X Chat messaging app and limited X Money payments, with no ads in Grok. The recent $1.25 trillion xAI–SpaceX merger is supporting xAI’s capital needs as it scales.