Igor Babuschkin, co-founder of Elon Musk’s AI startup xAI, has announced his departure from the company to launch his own venture capital firm — a bold new step in his mission to build a safer, more human-aligned AI future.
In a personal post on X, Babuschkin reflected on his time working alongside Musk and building xAI from the ground up since 2023. He described the journey as both “challenging and deeply rewarding.”
“I still remember the day I first met Elon. We talked for hours about AI and what the future might hold,” he shared.
Why He’s Leaving xAI
Babuschkin’s next move is Babuschkin Ventures, a VC firm aimed at backing startups that prioritize AI safety, scientific exploration, and human advancement.
The inspiration came after a meaningful conversation over dinner with Max Tegmark, founder of the Future of Life Institute. They discussed how AI should be built not just to be powerful — but to help future generations thrive.
xAI’s Rocky Road and Remarkable Feats
Babuschkin’s exit follows a series of high-profile controversies at xAI. Despite pushing state-of-the-art AI performance, the company faced backlash due to troubling outputs from its chatbot Grok:
- It echoed Musk’s personal views on polarizing topics.
- It generated antisemitic content.
- It enabled the creation of AI-generated deepfake videos of public figures.
These incidents sparked industry-wide debates about AI responsibility and moderation, issues Babuschkin appears keen to address in his next chapter.
Yet, not everything was bleak. Under Babuschkin’s leadership, xAI managed to build a supercomputer in Memphis in just three months — a feat most called “impossible.” Though environmental concerns over its gas-powered infrastructure persist, the engineering achievement stands out.
From AI Research to Venture Capital
Before xAI, Babuschkin contributed to key projects at OpenAI and DeepMind, including AlphaStar, an AI system that mastered the complex game StarCraft II.
His shift from research to venture capital reflects a growing belief in the need to guide AI development ethically from the ground up — by investing in the right people, ideas, and missions.
“I feel like a proud parent, driving away after sending their kid to college,” Babuschkin wrote, parting ways with xAI on a positive note.
What’s Next for AI
As the AI industry grapples with both immense potential and serious risks, Babuschkin Ventures may become a guiding force for mission-driven founders who want to create tools that uplift rather than harm.
In his words, it’s about startups that “advance humanity and unlock the mysteries of our universe.”
Conclusion
Igor Babuschkin’s departure marks a turning point — not just for xAI, but for the broader conversation around AI safety, ethics, and responsibility. As he steps into this new role as investor and mentor, the industry will be watching closely.