xAI loses last original co-founder ahead of SpaceX IPO

What happened: Elon Musk's xAI, a key player in the AI sector, has lost its last original co-founder, Ross Nordeen, as it prepares for a SpaceX IPO. This follows the departure of CFO Anthony Armstrong in April. SpaceX merged with xAI, valuing the combined entity at $1.25 trillion, and is aiming for a $1.75 trillion valuation in its upcoming IPO.

Market impact: The AI sector is affected, with investors watching xAI's IPO closely. The high valuations sought by SpaceX could reprice expectations for other AI companies. The exits of key personnel at xAI may raise concerns about management stability, potentially impacting investor confidence.

What to watch next: SpaceX's IPO date, which will determine if the company achieves its targeted valuation. xAI's earnings reports, to assess the impact of the leadership changes on the company's financial performance. The broader AI sector's performance, to gauge investor sentiment towards high-growth tech companies.