Elon Musk has named longtime financial advisor and former Morgan Stanley banker Anthony Armstrong as the new chief financial officer of xAI and X.
Quick Summary -TLDR:
- Anthony Armstrong, who helped Musk with the Twitter acquisition, is now CFO of xAI and X
- He replaces Mike Liberatore, who exited following internal conflicts
- Armstrong’s appointment follows a wave of executive resignations at both companies
- His arrival comes as xAI eyes a $200 billion valuation and reportedly loses $1 billion monthly
What Happened?
Anthony Armstrong has officially taken on the role of chief financial officer at Elon Musk’s artificial intelligence startup xAI and social media platform X. The move follows a series of leadership exits and a critical phase for both companies, especially as xAI aims for a massive funding round. Armstrong’s close ties with Musk and deep experience in high-stakes finance signal a strategic effort to stabilize both ventures.
The appointment of Anthony Armstrong, who advised on the Twitter takeover, comes as the billionaire contends with a spate of senior departures across his businesses https://t.co/qrTpbOHehi pic.twitter.com/6Sm2oGO0MU
— Financial Times (@FT) October 7, 2025
Veteran Deal Strategist Joins at Crucial Moment
Armstrong has been working with xAI informally for weeks and was only recently appointed CFO, according to reports from the Financial Times. He previously served as Morgan Stanley’s global head of tech mergers and acquisitions, and was a key player in Musk’s $44 billion acquisition of Twitter in 2022. That deal, largely financed by Morgan Stanley, helped forge a strong working relationship between Armstrong and Musk.
Now officially part of Musk’s core executive team, Armstrong will oversee financial operations for both xAI and X, as the two entities continue operating under a more integrated leadership structure established earlier this year. Armstrong’s X profile now displays the xAI logo, signaling his formal alignment with the AI venture.
Replacing Departed Leadership
Armstrong fills a leadership gap left by Mike Liberatore, who exited xAI earlier this year amid internal disputes over financial targets and company structure. The leadership vacuum widened over the summer with several high-level resignations:
- Linda Yaccarino, X’s CEO, resigned in July.
- Robert Keele, xAI’s general counsel, left in August.
- Igor Babuschkin, xAI co-founder, stepped away to start a VC firm focused on AI safety.
- Mahmoud Reza Banki, X’s CFO, is also leaving the company.
This shakeup suggests a broader restructuring effort, with Armstrong’s appointment seen as a stabilizing move amid internal flux.
Financial Challenges and Big Bets
Armstrong joins as xAI prepares for a funding round reportedly targeting a $200 billion valuation, though the deal is not yet finalized. Musk has been seeking fresh capital to fuel the AI race, going up against well-funded competitors like OpenAI, Alphabet, and Meta.
Despite its ambitions, xAI is facing massive operational costs. Bloomberg reported earlier this year that the company is burning through $1 billion per month, largely due to heavy spending on infrastructure and data centers. Armstrong’s financial expertise will be crucial in managing these outflows while preparing for the anticipated investment round.
SQ Magazine’s Takeaway
I think Musk bringing in Armstrong shows he is getting serious about putting his house in order. With all the execs leaving recently, xAI and X badly needed some steady hands on the wheel. Armstrong is not just any banker, he’s someone Musk trusts from the Twitter deal. That kind of loyalty and experience matters, especially when the company is trying to raise billions and survive billion-dollar monthly burns. It is a smart move, but also one that shows how intense and costly this AI race has become.
