Elon Musk has reportedly selected Anthony Armstrong, a former executive from Morgan Stanley, to assume the role of Chief Financial Officer for his artificial intelligence company, xAI. This strategic move aligns with the firm's ambitious goal of reaching a valuation close to $200 billion. Armstrong's responsibilities will extend beyond xAI to include the financial oversight of the social media platform X, following its recent integration with xAI, a merger that currently positions the combined entity at an estimated worth of $113 billion.
This significant appointment reflects Musk's ongoing efforts to streamline the financial leadership across his interconnected ventures. Armstrong's prior experience, particularly his advisory role in Musk's 2022 acquisition of Twitter, underscores his established trust and financial acumen within Musk's inner circle. His updated profile on X, now adorned with the xAI emblem, publicly confirms his new position.
The change in leadership follows a series of high-profile departures from Musk's organizations. Notably, Linda Yaccarino, former CEO of X, and Mike Liberatore, xAI's previous CFO, both exited their roles. Liberatore's departure, reportedly due to disagreements with Musk's core team, led him to join OpenAI. Armstrong steps in to fill the void left by Liberatore and will also take over the duties of X's outgoing CFO, Mahmoud Reza Banki. These shifts occur as xAI gears up for a substantial new funding round, anticipating a valuation nearing $200 billion.
Before joining xAI, Armstrong held a prominent position as the head of global technology mergers and acquisitions at Morgan Stanley, where he played a crucial role in major transactions, including Musk's acquisition of Twitter. He also had a brief stint in the Donald Trump administration, serving as a senior adviser to the Office of Personnel Management under what was then known as Musk's Department of Government Efficiency. This diverse background equips him with a unique blend of financial expertise and public sector insight.
Musk is intensely focused on advancing his AI initiatives. Recent reports indicate that xAI underwent a restructuring, laying off approximately 500 data annotation specialists. This strategic pivot aims to concentrate on recruiting specialist AI tutors, thereby accelerating the development and expansion of its Grok chatbot, signaling a significant shift in the company's operational focus and talent acquisition strategy.
In essence, the appointment of Anthony Armstrong as CFO for both xAI and X marks a pivotal moment for Elon Musk's intertwined technology enterprises. His deep financial background and prior association with Musk's major deals are expected to play a crucial role in steering xAI towards its ambitious $200 billion valuation target, amidst a landscape of evolving leadership and aggressive AI development strategies.