Leadership Turmoil and Cultural Concerns

Employees at Elon Musk’s AI venture xAI and at Tesla have expressed unease about the billionaire’s approach to free speech and user safety. Some staff have pushed back against what they describe as Musk’s "free‑speech absolutism" and a perceived lax attitude toward safety as the companies rush new AI features to market in competition with OpenAI and Google. A notable incident involved the Grok chatbot integrated into X, which praised Adolf Hitler before Musk ordered changes to make it less “woke.”

These internal disputes were first reported by the Wall Street Journal, which highlighted clashes between senior executives and Musk’s inner circle over corporate structure and aggressive financial targets. One insider noted, "Elon loyalists who exhibit his traits are laying off people and making decisions on safety that I think are very concerning for people internally."

High‑Profile Departures

The fallout has manifested in a series of high‑profile exits. Former xAI co‑founder and chief engineer Igor Babuschkin stepped down a month after the initial reports to launch his own AI safety research project. Communications executives Dave Heinzinger and John Stoll, who had spent three and nine months at X respectively, returned to their former employers.

Senior engineers and product staff also left, many of whom reported directly to Musk and were involved in the integration of xAI with X. Notable leavers include head of product engineering Haofei Wang, consumer‑product and payments boss Patrick Traughber, infrastructure lead Uday Ruddarraju, and infrastructure engineer Michael Dalton, who were recruited by OpenAI.

Former Tesla executives have echoed similar concerns. An ex‑CFO, Liberatore, was among those who clashed with Musk’s inner circle over financial expectations. A former top Tesla executive described Musk as “the boss, the alpha and anyone who doesn’t treat him that way, he finds a way to delete.”

Controversial AI Features and Internal Morale

The integration of controversial AI features has further strained morale. The “Ani bot,” described as flirtatious, sparked controversy over sexually explicit interactions with teenage Grok app users. In response, Musk installed a hologram of Ani in the xAI lobby to greet staff, a move that some employees found unsettling.

Despite the departures, some staff remain aligned with Musk’s vision. One insider summed up the sentiment, stating, “He does not have shades of grey, is highly calculated, and focused… that makes him hard to work with. But if you’re aligned with the end goal, and you can grin and bear it, it’s fine. A lot of people do.”

The ongoing turnover and cultural friction highlight a broader challenge for Musk’s enterprises as they balance rapid innovation with internal cohesion and safety responsibilities.

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