xAI's Head of Legal Resigns: Robert Kelly Steps Down

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Resignation Details and Reasons

Robert Kelly announced: the former Head of Legal at the nascent AI company xAI, his resignation this week after serving for one year. Kelly attributed his decision to a desire to spend more time with his children, and also indicated a "difference in views" with his boss, Elon Musk, who did not issue an immediate comment on the move. xAI was founded by Elon Musk in March 2023 with the goal of "understanding the true nature of the universe," and works on developing advanced AI models such as Grok.

“End of the Workday” — Source: Pixabay. License: CC.

Balancing Work and Family: Kelly, expressing his love for his two children, explained that he could no longer balance the demands of his family and his job, stating: "I couldn't continue riding two horses at once." Despite this, he described his time at the company as "incredible" and working alongside Musk as "the adventure of a lifetime."

xAI's Journey and Developments

Widespread Support for His Resignation: His resignation announcement received significant support across social media from his colleagues at xAI and parents. Kelly had joined the company in May 2024 as its first Head of Legal, shortly after launching his own law firm. At the time, he enthusiastically commented: "I couldn't miss the opportunity to lead legal affairs at xAI," describing himself as "extremely excited and insanely lucky."

Massive Funding Round: Kelly's appointment came shortly before xAI announced a massive Series B funding round in May 2024, where it raised $6 billion from major investors such as Andreessen Horowitz and Sequoia Capital, bringing the company's valuation to $24 billion.

“Funding” — Source: Pixabay. License: CC.

Accelerated Growth and X Acquisition: xAI then experienced accelerated growth, and in March of the following year, it acquired the social media company X, also owned by Musk, in a deal reportedly valuing xAI at $80 billion and X at $33 billion.

“Human Brain” — Source: Pixabay. License: CC.

Kelly's Background, His Successor, and Patterns of Change in Musk's Companies

Robert Kelly's Professional History: Before joining xAI, Kelly served as the Head of Legal at autonomous aircraft manufacturer Elroy Air, and also worked as general counsel at Airbus's Silicon Valley innovation center.

“Memories” — Source: Pixabay. License: CC.

Lily Lim's Unique Background: Lily Lim, who will succeed Kelly, has a unique background, having been a rocket scientist at NASA and working on spacecraft navigation for a Venus mapping project before transitioning to the legal field. Lim joined xAI in late 2024 as a privacy and intellectual property specialist, following legal experience at major companies such as ServiceNow, according to a report published by TechCrunch.

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Pattern of Changes in Musk's Companies: Kelly's resignation comes amidst what appears to be a continuous pattern of executive-level changes in Musk's companies. Last month, Linda Yaccarino departed her role as CEO of X, and Tesla also saw a number of its senior executives resign. Musk is known for expecting employees to work long hours, even if it means sleeping in the office, an approach he notably applied after acquiring Twitter (now X).