Former OpenAI Staffers Warn xAI Risks Could Jeopardize SpaceX's $75 Billion IPO
Updated
Updated · WIRED · May 19
Former OpenAI Staffers Warn xAI Risks Could Jeopardize SpaceX's $75 Billion IPO
2 articles · Updated · WIRED · May 19
A new letter from two former OpenAI staffers and several AI safety nonprofits says xAI poses “unpriced risks” that investors should weigh before SpaceX pursues an IPO expected to seek up to $75 billion.
The warning argues xAI’s weak safety practices could expose the combined company to heavier regulation, litigation and compliance costs, especially if xAI continues building frontier AI models inside SpaceX.
The letter cites Grok incidents including unsolicited “white genocide” responses and thousands of sexualized images of women and children; that episode drew demands from at least 37 U.S. attorneys general.
SpaceX’s valuation topped $1 trillion after acquiring xAI last year, but the authors say investors still need clearer disclosures on xAI’s model plans, governance and safety spending—reported at just two or three staffers in January.
The appeal comes as Washington weighs tougher AI oversight, including a reported Trump administration executive order that could give U.S. intelligence agencies more authority over advanced models.
Can SpaceX's trillion-dollar valuation survive the unpriced risks and mounting lawsuits from its controversial AI lab, xAI?
Will the Grok lawsuits make AI companies legally responsible for harmful content, piercing the internet's long-standing Section 230 shield?
SpaceX’s $2 Trillion IPO at Risk: xAI’s AI Safety Failures, Regulatory Probes, and Financial Volatility Threaten Investor Confidence
Overview
A coalition of AI safety advocates has issued an urgent warning about the 'unpriced risks' linked to Elon Musk's xAI, highlighting that these unresolved issues could seriously undermine investor confidence and the valuation of SpaceX's upcoming IPO. Their public letter calls for much greater transparency from xAI, arguing that current safety measures are not enough for investors to fully understand the AI risks affecting SpaceX's financial future. While xAI has made some recent safety improvements, the advocates stress that more disclosures are needed to properly assess potential liabilities, regulatory challenges, and the overall impact on SpaceX's public offering.