TLDRs;
- Elon Musk appoints former Morgan Stanley banker Anthony Armstrong as CFO for both xAI and X.
- Armstrong replaces Mike Liberatore, who left amid internal disputes over xAI’s structure and financial goals.
- xAI faces leadership instability, with several top executives exiting within months of joining.
- Armstrong’s appointment signals a shift toward financial discipline and strategic stability at Musk’s AI startup.
Elon Musk has named former Morgan Stanley banker Anthony Armstrong as the new Chief Financial Officer (CFO) of his artificial intelligence venture, xAI, marking a pivotal leadership change at the fast-growing AI firm.
Armstrong will manage financial operations for both xAI and X, further integrating Musk’s AI ambitions with his social media empire.
The appointment comes after the departure of Mike Liberatore, who resigned earlier this year following internal disputes over xAI’s financial targets and corporate structure. Armstrong’s arrival signals Musk’s intent to restore order and continuity at xAI, which has faced a string of executive exits in recent months.
Bringing Wall Street Experience to Silicon Valley
Anthony Armstrong’s background in investment banking at Morgan Stanley positions him as a key financial strategist for Musk’s expanding network of companies. Armstrong reportedly worked closely with Musk in recent years, including during his stint at the Department of Government Efficiency in Washington, a Musk-led initiative to promote bureaucratic reform through data-driven governance.
Insiders say Armstrong is trusted within Musk’s inner circle, a crucial qualification given Musk’s demanding management style and preference for tight-knit executive teams.
“He’s not just a numbers guy, he understands Elon’s long-term vision,” said one person familiar with the appointment.
xAI’s Leadership Turnover Raises Questions
The transition follows a turbulent period at xAI, which launched in 2023 to challenge OpenAI, Google DeepMind, and other major AI players.
The startup has struggled with high-profile resignations since mid-2025, including former CFO Mike Liberatore, general counsel Robert Keele, senior lawyer Raghu Rao, and even co-founder Igor Babuschkin, who left to start a venture capital firm focused on AI safety.
Liberatore’s short tenure of just four months reflected deeper tensions inside Musk’s AI ecosystem. During his time at xAI, he helped raise a combined $10 billion in debt and equity financing, nearly half of it from SpaceX , and supervised the expansion of xAI’s Memphis data center. However, disagreements over corporate governance and Musk’s aggressive financial targets reportedly led to his exit.
Such rapid turnover isn’t new to Musk-led ventures. Data from internal company reports suggest that Tesla experiences a 44% annual executive turnover rate, far exceeding the tech industry average of 13%. Analysts say the same pattern now appears to be unfolding at xAI, potentially affecting the company’s ability to execute its ambitious roadmap.
A Company at a Crossroads
xAI’s challenges go beyond leadership instability. Its flagship chatbot, Grok, has faced repeated controversies over toxic or offensive outputs after Musk ordered engineers to make it “less politically correct.” In May 2025, the chatbot produced alarming responses, forcing temporary shutdowns and public apologies.
These incidents highlight the broader tension between Musk’s vision for open expression in AI and the industry’s push for safety and regulation. Armstrong’s appointment could signal a shift toward greater financial discipline and governance oversight as xAI attempts to regain public trust and investor confidence.
Despite the turbulence, Musk’s AI venture continues to expand aggressively. The company is scaling its Memphis-based data centers and integrating xAI technology into X’s algorithmic systems , a move aimed at deepening personalization and boosting engagement across Musk’s platforms.
