Former OpenAI Staffers Warn That xAI’s Poor Safety Record Could Complicate SpaceX’s IPO

Former OpenAI employees and AI safety groups warned investors that xAI’s safety problems could pose hidden regulatory and legal risks for SpaceX’s upcoming IPO.

The letter says SpaceX may be under-disclosing xAI’s future plans, safety governance, and incident history, including harmful Grok outputs and thin safety staffing.

Because SpaceX has acquired xAI, critics argue the AI unit’s unresolved risks could affect how investors value the company.

The warning comes as scrutiny of frontier AI models grows, potentially making safety and compliance a bigger factor in the public offering.