xAI co-founder Tony Wu abruptly resigned from the company late Monday night, marking the latest departure of a senior executive from Elon Musk's AI venture. Wu's exit comes amidst a rapidly evolving AI landscape, where advancements in agentic AI are beginning to reshape industries, according to multiple reports.
Wu announced his resignation on social media, expressing positive sentiments about his time at xAI. "The current era is one where a small team armed with AIs can move mountains and redefine whats possible," he wrote, potentially hinting at the reasons behind his departure, according to Ars Technica. As of March 2025, xAI reportedly employed 1,200 people, including AI engineers and staff focused on the X social network.
The AI field is seeing significant developments in agentic AI, which is able to take goal-driven action. OpenAI recently upgraded its Responses API to support agent skills and a complete terminal shell, signaling a shift away from limited AI agents, VentureBeat reported. This update allows developers to access multiple agentic tools with a single call.
Simultaneously, alternative memory architectures like "observational memory" are emerging as alternatives to Retrieval-Augmented Generation (RAG) systems. Observational memory, developed by Mastra, cuts AI agent costs significantly and outperforms RAG on long-context benchmarks, according to VentureBeat.
The advancements in AI are also impacting industries like fraud protection. Mastercard's Decision Intelligence Pro (DI Pro) uses sophisticated AI models to analyze individual transactions and identify suspicious activity in milliseconds, VentureBeat reported. This technology is crucial, as Mastercard processes approximately 160 billion transactions annually, with peak periods seeing up to 70,000 transactions per second.
Despite the progress, the widespread deployment of agentic AI has been slower than anticipated. VentureBeat contributing editor Taryn Plumb reported in December 2025 that the fundamentals needed for scaling agentic AI were still missing.
Discussion
AI Experts & Community
Be the first to comment