Babuschkin is leaving xAI to launch his own venture capital firm, Babuschkin Ventures, which he says will support AI safety research and back startups that “advance humanity and unlock the mysteries of our universe.”
The xAI co-founder says he was inspired to start the firm after a dinner with Max Tegmark, the founder of the Future of Life Institute, in which they discussed how AI systems could be built safely to encourage the flourishing of future generations.
Here’s what’s known:
- Babuschkin was a co-founder and engineering lead at xAI, where he helped build infrastructure and tooling for large-scale model training.
- He announced his departure in August 2025 to launch Babuschkin Ventures, a firm focused on AI safety and agentic systems.
- Elon Musk publicly thanked him for his contributions, saying xAI “wouldn’t be here without you”.
Max Tegmark, the MIT physicist and founder of the Future of Life Institute (FLI), has been involved in a few notable controversies—mostly surrounding funding decisions, AI safety advocacy, and political entanglements. Here’s a breakdown:
🔥 1. Grant Offer to a Swedish Far-Right Group
One of the most serious controversies emerged in 2023 when an investigation by Expo revealed that the Future of Life Institute, under Tegmark’s leadership, had offered a $100,000 grant to a foundation linked to Nya Dagbladet, a Swedish media outlet with ********* affiliations.
- The grant was intended to support “independent journalism.”
- The offer was reportedly signed by Tegmark himself.
- After public scrutiny, the grant was revoked,
Babuschkin Ventures is a new investment firm launched in August 2025 by Igor Babuschkin, a co-founder of Elon Musk’s AI company xAI. The firm will focus on supporting AI safety research and investing in startups developing AI and agentic systems that are designed to advance humanity and explore the universe. Babuschkin’s new venture aims to promote the development of AI that is safe and beneficial, continuing his mission to create AI that helps humanity. [1, 2, 3, 4, 5]
Key Aspects of Babuschkin Ventures
- Focus on AI Safety: A core objective of the firm is to fund research and development in AI safety, recognizing the critical need to address potential risks as AI systems become more powerful. [1, 4]
- Investment in Humanity-Advancing Startups: The venture will also invest in startups creating AI and agentic systems with the goal of making positive contributions to humanity and fostering scientific discovery. [1, 4, 5]
- Founder’s Background: Igor Babuschkin brings his experience from his roles at OpenAI, Google DeepMind, and as a co-founder of xAI to this new venture. [1, 5]
- Mission and Vision: Babuschkin’s new firm aligns with his long-standing vision of building AI that benefits humanity and seeks to understand the true nature of the universe. [1, 4]
- Context: The launch of Babuschkin Ventures comes after Babuschkin’s departure from xAI in August 2025, following a period of rapid growth and significant technical achievements at the AI company. [1, 3, 5, 6]
[2] https://finance.yahoo.com/news/xai-co-founder-babuschkin-departs-214220062.html
[4] https://observer.com/2025/08/elon-musk-xai-loses-co-founder-igor-babushkin/
igor b- “I still remember the day I first met Elon, we talked for hours…”
🧠 Babuschkin Ventures
Igor Babuschkin, formerly of xAI (Elon Musk’s AI company), launched Babuschkin Ventures to fund AI startups focused on safety and ethics. As of now, there’s no indication that Babuschkin Ventures is using public money. The venture appears to be privately funded, likely through Babuschkin’s own resources and potentially private investors aligned with his mission.
🌍 Max Tegmark & Public Funding
Max Tegmark is president of the Future of Life Institute (FLI) and co-founder of the Foundational Questions Institute (FQxI). Here’s how public and private funding plays into both:
🔹 Future of Life Institute (FLI)
- Funding Sources: Primarily private donations, including millions from Elon Musk’s foundation.
- Controversy: FLI offered (and later revoked) a $100,000 grant to a Swedish foundation linked to extremist views, raising questions about its vetting process.
- Public Money?: No direct evidence of government/public