In a major leadership shake-up, Elon Musk has appointed Anthony Armstrong a former Morgan Stanley investment banker as the new Chief Financial Officer (CFO) of his artificial intelligence company, xAI. The move reflects Musk’s growing focus on financial discipline and strategic expansion as xAI prepares for a new funding round that could reportedly value the firm at nearly $200 billion.
A Strategic Appointment for xAI and X
According to reports from Reuters and Financial Times, Armstrong will not only serve as CFO of xAI but will also oversee the financial operations of X (formerly Twitter). This dual role makes him a key player in Musk’s broader ecosystem of companies that include SpaceX, Tesla, Neuralink, and X.
Armstrong replaces Mike Liberatore, the outgoing xAI CFO, and takes over certain financial responsibilities from Mahmoud Reza Banki, who had been managing finances for X. His appointment comes at a time when Musk is trying to stabilize the social media company’s finances following steep advertising losses over the past year.
From Morgan Stanley to Musk’s Inner Circle
Before joining Musk’s ventures, Armstrong worked at Morgan Stanley, where he played a pivotal role in major technology and merger deals. Notably, he was part of the advisory team that helped Elon Musk with the $44 billion acquisition of Twitter in 2022.
His deep understanding of financial structuring, capital markets, and corporate M&A has made him a trusted figure within Musk’s circle. Insiders suggest that Armstrong’s appointment could strengthen xAI’s ability to attract investors, streamline financial operations, and manage the increasing cost of AI research and data infrastructure.
Navigating Financial Challenges
Both X and xAI face major financial challenges. While xAI has ambitious goals of competing directly with OpenAI, Google DeepMind, and Anthropic, it must secure large-scale funding to cover the enormous costs of AI model training and compute resources.
Meanwhile, X continues to struggle with ad revenue declines following changes in content moderation and platform policy. Musk has been attempting to diversify X’s income through subscription features, creator monetization, and the introduction of an “everything app” ecosystem.
Armstrong’s financial strategy will therefore be critical balancing cost optimization, investment efficiency, and new revenue generation while preparing xAI for its next capital raise.
xAI’s Growing Influence
Founded in 2023, xAI has quickly positioned itself as a key competitor in the generative AI industry. The company recently launched its chatbot Grok, which integrates with X and offers a conversational interface powered by xAI’s proprietary large language model.
With Armstrong’s financial leadership, xAI aims to scale its infrastructure, expand globally, and strengthen its partnerships in chip supply a pressing issue as global demand for GPUs and AI hardware continues to outpace availability.
Elon Musk’s decision to bring Anthony Armstrong on board marks a significant step toward professionalizing the financial operations of both xAI and X. With deep roots in Wall Street and experience managing billion-dollar deals, Armstrong’s expertise could prove essential in guiding Musk’s AI ventures toward sustainable growth and financial stability.
As xAI gears up for a potential multi-billion-dollar funding round, Armstrong’s leadership will likely shape how the company evolves not just as a technology pioneer but as a global financial powerhouse in the rapidly growing AI economy.
