TLDRs:
- Robert Keele resigns as xAI’s legal chief after a year, citing family commitments and philosophical differences with Elon Musk.
- Executive turnover at Musk-led companies far exceeds industry averages, with Tesla’s direct-report churn at 44% annually.
- Keele’s exit comes as xAI pursues $12B for its second data center despite being unprofitable.
- Former NASA engineer Lily Lim takes over as xAI’s top lawyer, combining technical expertise with legal skills.
Robert Keele has stepped down as head of legal at xAI, Elon Musk’s artificial intelligence startup, after just over a year in the role.
In a statement posted on LinkedIn a, Keele cited “differences in worldview” with Musk and a desire to spend more time with his family. Musk has not issued a public comment.
Keele joined xAI in May 2024, weeks before the company closed a US$6 billion Series B funding round that valued it at US$24 billion. His resignation adds to a growing list of high-profile departures from Musk-led firms, including X CEO Linda Yaccarino and several Tesla executives.
Turnover Trend Spans Musk’s Companies
Keele’s resignation fits a well-documented pattern of high executive turnover across Musk’s ventures.
At Tesla, the annual turnover rate for executives reporting directly to Musk has reached 44%, compared to about 9% at Meta, Amazon, and Netflix. Overall executive churn at Tesla is 27%, almost double the 15% industry average.
Analysts point to Musk’s demanding, high-contact leadership style, managing up to 18 direct reports at once, as a key reason for the trend. This pattern is visible not only at Tesla but also at X and xAI, suggesting structural factors rather than isolated events.
Departure Comes Amid xAI Expansion Push
Keele’s timing is significant, coming just weeks after xAI’s multibillion-dollar funding win and its acquisition of X.
In his statement, Keele admitted it was impossible to keep “riding two horses at once, the family and the job.”
Meanwhile, xAI is moving aggressively to expand its computing infrastructure. The company is seeking US$12 billion to build Colossus 2, its second massive data center, following the Memphis-based Colossus, which houses 200,000 GPUs.
To raise the funds, xAI is courting private-equity players such as Valor Equity Partners, a frequent investor in Musk’s companies.
Despite being valued at US$75 billion, xAI remains unprofitable and is projected to burn through US$13 billion in cash by 2025.
NASA Alum to Lead Legal Operations
Lily Lim, who joined xAI in 2024 as a privacy and intellectual property specialist, will replace Keele as head of legal. A former NASA engineer, Lim brings a rare combination of technical and legal expertise, making her well-suited to handle the complex regulatory environment facing AI firms.
Her appointment signals xAI’s focus on compliance and intellectual property strategy as it scales operations. Whether she will remain in the role long-term will depend on how effectively she can navigate the dual challenges of Musk’s management pace and the competitive AI market.
