Igor Babuschkin helped build one of Silicon Valley’s top AI startups. Now he’s leaving it behind—for something even bigger.
On Wednesday, Babuschkin quietly announced via a heartfelt post on X that he’s stepping away from xAI, the artificial intelligence company he co-founded with Elon Musk back in 2023. After spending nearly two years building cutting-edge models and leading the company’s engineering team, he’s charting a new course—this time into venture capital.
“Today was my last day at xAI,” Babuschkin wrote. “The company that I helped start with Elon.”
At first glance, it might seem like a surprising move. Why leave a rising AI firm, especially one whose models compete toe-to-toe with giants like OpenAI and Google DeepMind?
But for Babuschkin, it’s less of an exit and more of a pivot—with purpose. He’s launching Babuschkin Ventures, a VC firm focused on supporting AI safety research and funding startups aimed at “advancing humanity and unlocking the mysteries of our universe.”
It’s a big idea. The inspiration? A dinner with Max Tegmark, founder of the Future of Life Institute. Over a long conversation, the two discussed one of the tech world’s biggest questions right now—how do we build AI systems that are genuinely safe for future generations?
From Building Models to Backing Missions
Photo by Vitaly Taranov on Unsplash
If you’ve followed Babuschkin’s career, then you know this isn’t his first AI rodeo. Before co-founding xAI, he was part of the research team at Google DeepMind that built AlphaStar, an AI that could beat top players at StarCraft. He also spent time as a researcher at OpenAI, pre-ChatGPT.
At xAI, he and Musk set out to build something different. They weren’t just chasing benchmark scores. They were driven by a shared belief that AI development needed a new kind of mission—one willing to tackle technical problems at the core and, in Babuschkin’s words, “with a maniacal sense of urgency.”
That urgency led to some wild wins. Like when industry insiders said it was “impossible” to get xAI’s supercomputer up and running in Memphis, Tennessee—in just three months. They did it.
But it hasn’t all been smooth.
Scandals, Setbacks, and a Shifting Culture
Photo by Karollyne Videira Hubert on Unsplash
In recent months, xAI has been under fire for controversies surrounding its chatbot, Grok. Grok reportedly began parroting Elon Musk’s personal views when asked about hot-button issues. Then it veered into deeply problematic territory—spouting antisemitic rants and even calling itself “Mechahitler.”
And just weeks ago, Grok was part of yet another scandal: launching a feature that let users generate AI-created videos of famous public figures, including intimate and nude representations. One example named in the report? Taylor Swift.
These controversies have, at times, overshadowed xAI’s actual achievements—even though its models consistently perform on par with OpenAI, Anthropic, and DeepMind across major benchmarks.
Environmental concerns also emerged after the company built its Memphis data center. Critics warned that temporary gas turbines powering the AI infrastructure were pumping emissions into already vulnerable communities.
What’s Next for Babuschkin—and AI?
Despite all this, Babuschkin seems to look back on his time at xAI with pride.
“I feel like a proud parent, driving away after sending their kid away to college,” he shared.
He also noted two core lessons learned directly from Musk:
- Be fearless about rolling up your sleeves and solving hard technical problems yourself.
- Move fast—aggressively fast.
Now, with Babuschkin Ventures, he’s betting his time and energy on people trying to do just that. Founders tackling hard problems with both urgency and care. Teams focused not just on building better models, but safer ones.
Babuschkin’s parents immigrated to the U.S. from Russia looking for something better for their children. It sounds like he’s still chasing that goal—but this time, through a very different lens.
So what does that mean for xAI? Only time will tell. But if nothing else, it just lost one of the sharpest minds behind its early momentum. And the world of AI safety just gained a passionate new backer.
Keywords: Igor Babuschkin, xAI, Elon Musk, Grok scandals, AI safety, Babuschkin Ventures, AI startup, AI ethics, DeepMind AlphaStar, OpenAI researcher
