San Francisco, California – Robert Keele has resigned as the legal chief of xAI, Elon Musk’s artificial intelligence startup, after just over a year in the position. In a LinkedIn statement, Keele cited “differences in worldview” with Musk as well as a desire to devote more time to his family. Musk has not commented publicly on Keele’s departure.
Keele joined xAI in May 2024, shortly before the company secured $6 billion in its Series B funding round, which valued the firm at $24 billion. His exit is part of a larger trend of high-profile departures from companies led by Musk, including X CEO Linda Yaccarino and several executives from Tesla.
This trend of executive turnover at Musk’s companies significantly exceeds industry norms. Tesla has an annual turnover rate of 44% among executives who report directly to Musk, far higher than the 9% average for companies like Meta, Amazon, and Netflix. Overall, Tesla reports a 27% churn rate, nearly double the 15% industry average. Analysts attribute this high turnover to Musk’s demanding leadership style, which involves managing as many as 18 direct reports simultaneously.
Keele’s resignation comes during a crucial time for xAI, particularly as the company seeks to raise $12 billion to build its second massive data center, known as Colossus 2. This follows the establishment of their first data center in Memphis, which houses 200,000 GPUs. xAI is actively courting private equity investors like Valor Equity Partners, who have previously invested in Musk’s ventures. Despite its $75 billion valuation, xAI remains unprofitable and is projected to exhaust upwards of $13 billion in cash by 2025.
Taking over Keele’s responsibilities is Lily Lim, who previously specialized in privacy and intellectual property at xAI and has a background as a NASA engineer. Lim’s unique combination of technical and legal expertise positions her to navigate the complex regulatory landscape that AI firms face. Her appointment signifies xAI’s intensified focus on compliance and intellectual property as the company prepares for substantial growth. The effectiveness and longevity of her tenure may depend on her ability to meet the rigorous demands of Musk’s management style and the competitive nature of the AI sector.
As xAI continues to expand its operations, the company faces the challenge of balancing rapid growth with maintaining a stable leadership team. The rate of turnover in executive positions raises questions about the internal dynamics within Musk’s companies and how they might affect their long-term strategies.
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