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

A striking development has emerged in artificial intelligence. Maxwell ZeffBusinessMay 19, 2026 11:00 AMFormer OpenAI Staffers Warn xAI's Poor Safety Record Could Complicate SpaceX’s IPOThe ex-employees, who cofounded a new AI watchdog group, say investors deserve more information about xAI’s safety practices before SpaceX goes public. BATH, UNITED KINGDOM - JANUARY 11: In this photo illustration a iPhone screen displays Elon Musk's repost on his social media platform X regarding criticism from British Prime Minister Kier Starmer about his AI tool Grok, on January 11, 2026 in Bath, England. Elon Musk's company xAI has been widely criticised following reports that its AI tool Grok has been used to make sexualised images of children and undress women.

(Photo by Anna Barclay/Getty Images)Anna Barclay/Getty Images Save this story Save this storyTwo 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 published 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.

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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 advisor 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 that 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.

This advance offers important signals about the future of the sector, and the tech world is watching closely.