Elon Musk has tapped former Morgan Stanley banker Anthony Armstrong as the new CFO of his artificial intelligence venture xAI.
According to the Financial Times, Armstrong will not just be running xAI’s finances, he is taking control of both the AI company and X, consolidating massive financial power under one trusted ally. He has already updated his X profile to feature the xAI logo, confirming his dual role within Musk’s empire.
Exit, stage left
This appointment follows some behind-the-scenes drama. Armstrong is replacing Mike Liberatore, who departed xAI earlier this year after clashes with Musk’s inner circle over corporate structure and aggressive financial targets. Liberatore left after just three months and jumped straight to OpenAI, Musk’s biggest AI rival.
The executive churn runs deeper. Armstrong is also taking over duties from X CFO Mahmoud Reza Banki, who is leaving after less than a year in the role.
Musk’s secret weapon?
Armstrong is not your typical corporate hire, he has become one of Musk’s most trusted confidants. The former Morgan Stanley banker advised Musk on the $44 billion acquisition of Twitter (X’s former name) in 2022, and has emerged as a close lieutenant in recent years, including during Musk’s stint in Washington at the Department of Government Efficiency.
He inherits a financial mess, steering X back to profitability after a notable advertiser exodus following Musk’s decision to ease content moderation standards. While other executives have arguably cracked under pressure and fled to competitors, Armstrong has stuck around and delivered under Musk’s volatile management style and tough deadlines.
AI arms race
xAI, which Musk launched in 2023 to challenge Big Tech’s AI dominance, is entering a critical phase, and Armstrong now holds the purse strings for two interconnected empires. His Wall Street background could matter as xAI stares down OpenAI and Google.
The stakes are high. AI companies burn through billions and sprint for breakthrough capabilities, so having a seasoned financial strategist who speaks both banking and tech gives xAI an edge. Armstrong’s dual role also creates synergy between X’s social media platform and xAI’s technology development, which could accelerate growth for both.
Last month, The New York Times analyzed thousands of responses from xAI’s chatbot Grok, finding that despite Musk’s promises of neutrality, the system’s answers changed depending on his interventions.