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AI Agent Revolution: Musk's xAI Hit by Co-Founder Exodus

xAI co-founder Tony Wu resigned from the company late Monday night, marking the latest departure from Elon Musk's AI venture. Wu's exit follows a string of senior executive resignations in recent months, according to Ars Technica.

In a social media post, Wu expressed positive sentiments about his time at xAI, but stated it was time for his "next chapter." He wrote that "a small team armed with AIs can move mountains and redefine whats possible," a statement that may hint at the reasons for his departure. As of March 2025, xAI reportedly employed 1,200 people, including AI engineers and staff focused on the X social network, Ars Technica reported.

The AI landscape is also seeing advancements in other areas. VentureBeat reported on the development of "observational memory," an open-source technology that could reduce AI agent costs tenfold and outperform Retrieval-Augmented Generation (RAG) systems on long-context benchmarks. This technology, developed by Mastra, prioritizes persistence and stability in AI workflows.

Meanwhile, sophisticated AI models are being utilized to combat fraud. Mastercard's Decision Intelligence Pro (DI Pro) platform can analyze individual transactions in milliseconds to identify suspicious activity, according to VentureBeat. This is crucial as Mastercard's network processes approximately 160 billion transactions annually, with peak periods seeing up to 70,000 transactions per second.

The potential of agentic AI to transform Global Business Services (GBS) is also being explored. While 2025 was anticipated to be the year of agentic AI, its deployment has been slower than expected, according to VentureBeat. The fundamentals required to scale have been missing, according to a December 2025 VentureBeat post.

In other news, a campaign called "QuitGPT" is urging users to cancel their ChatGPT subscriptions. The campaign cites concerns about OpenAI president Greg Brockman's contributions to a political super PAC and the use of ChatGPT-4 by U.S. Immigration and Customs Enforcement (ICE), according to MIT Technology Review. Alfred Stephen, a freelance software developer, expressed frustration with ChatGPT's coding abilities and replies, which led him to support the campaign.

AI-Assisted Journalism

This article was generated with AI assistance, synthesizing reporting from multiple credible news sources. Our editorial team reviews AI-generated content for accuracy.

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