Former OpenAI Staffers Warn That xAI’s Poor Safety Record Could Complicate SpaceX’s IPO
The ex-employees, who cofounded a new AI watchdog group, say investors deserve more information about xAI’s safety practices before SpaceX goes public.
Two former OpenAI employees and a group of AI safety nonprofits are warning that Elon Musk’s AI lab, xAI , could become a liability for prospective investors in SpaceX, which is preparing to file what’s expected to be the largest initial public offering in Wall Street history.
In a letter directed to investors published on Tuesday, the ex-staffers highlighted what they describe as “unpriced risks” related to xAI that could complicate SpaceX’s reported plans to raise up to $75 billion as part of its IPO. The rocket company’s private valuation shot up to over $1 trillion after it acquired xAI last year . Musk claimed his rocket company could launch data centers into space for his AI lab, but the letter's authors argue that xAI’s poor record on safety issues could complicate how investors view the combined company as it gets ready to submit its IPO prospectus filing .
One of the letter’s signatories and coauthors is a new nonprofit called Guidelight AI Standards, which was cofounded by former OpenAI safety researcher Steven Adler and former OpenAI policy adviser Page Hedley. The group, which is backed by private donors, aims to improve the safety practices of frontier AI companies. Other AI safety nonprofits also signed on, including Legal Advocates for Safe Science and Technology, Encode AI, and The Midas Project.
Hedley tells WIRED in an interview that he believes xAI has the worst safety practices “nearly across the board” compared to other frontier AI developers, including OpenAI, Google DeepMind, and Anthropic. As a result, he argues, SpaceX may face a greater risk of regulation and litigation than other AI labs.
The letter's authors argue that SpaceX should make several disclosures to investors, including whether xAI intends to continue developing frontier AI models. SpaceX recently struck a deal to sell a significant portion of its GPU capacity to Anthropic , and the letter claims the agreement “leaves it unclear whether xAI is still a frontier-AI competitor inside a larger holding company.” If xAI continues to develop frontier AI models, the authors say, it should be required to publish a public safety and governance plan.
SpaceX and xAI did not immediately respond to WIRED’s request for comment.
