In a strategic move to bolster the financial operations of his artificial intelligence group, xAI, Elon Musk has appointed Anthony Armstrong, a seasoned banker and former Morgan Stanley executive, as the new chief financial officer (CFO) of the company. Armstrong, who has been working with xAI for several weeks, is expected to steer the company through a challenging phase, guiding both xAI and the social media platform X (formerly known as Twitter) back to financial stability. This announcement comes at a time of major executive reshuffling within Musk’s companies, signaling a shift in leadership that could reshape the future of xAI and its associated ventures.
Armstrong’s appointment, which was first reported by the Financial Times on October 6, 2025, marks the latest development in Musk’s ongoing mission to challenge Big Tech, particularly in the rapidly evolving field of artificial intelligence. Having worked closely with Musk during the $44 billion acquisition of Twitter in 2022, Armstrong is no stranger to the complexities of high-stakes financial deals. His new role at xAI solidifies the growing partnership between the financier and Musk, who have developed a close working relationship over the years.
A New Era for xAI and X
xAI was launched by Musk in 2023 with the aim of directly competing with industry giants like Google, Microsoft, and OpenAI, by building an AI ecosystem that aligns more closely with Musk’s vision for a free-speech-driven world. Musk has been highly critical of traditional tech companies, accusing them of over-censorship and lax safety standards. With this in mind, xAI was created as a platform to advance AI technology in a way that Musk believes would better serve the public. However, the journey has not been without its challenges.
One of the significant issues facing both xAI and X has been the financial instability caused by an exodus of advertisers, largely in response to Musk’s decision to relax content moderation policies on the platform. X, in particular, has struggled to regain its financial footing after Musk’s $44 billion acquisition, which was partly financed by Morgan Stanley, the investment bank where Armstrong previously held the role of global head of tech mergers and acquisitions. During this time, Armstrong played a crucial role in advising Musk on the Twitter purchase and navigating the complex financial terrain surrounding the deal.
As CFO of xAI, Armstrong will have to navigate these turbulent waters, working to restore confidence among advertisers and investors while overseeing the broader financial health of both xAI and X. His deep expertise in mergers and acquisitions, combined with his understanding of Musk’s long-term vision, could prove invaluable in the coming months as xAI looks to secure its place in the competitive AI market.
Replacing Mike Liberatore: A Troubling Exodus of Executives
Armstrong’s appointment comes at a time of significant leadership turnover at xAI. Mike Liberatore, the company’s previous CFO, stepped down earlier this year following a series of internal disputes with Musk’s inner circle over corporate structure and ambitious financial targets. Liberatore’s departure was part of a broader wave of executive exits, which also included X’s finance chief Mahmoud Reza Banki, who left after less than a year in the role, as well as xAI’s general counsel Robert Keele.
These departures raise questions about the stability and future direction of xAI and X under Musk’s leadership. While Armstrong is seen as a stabilizing force, his task will be far from easy. Rebuilding trust with investors and advertisers will require a delicate balance between Musk’s unconventional management style and the need for financial prudence.
Additionally, Armstrong’s role will likely involve navigating the tensions between Musk’s ambitious vision for AI and the practical realities of scaling a successful tech company. As the CEO of xAI, Musk has made no secret of his desire to challenge the existing AI giants, but doing so will require significant investment in research, development, and infrastructure. Armstrong’s expertise in financial strategy will be essential in ensuring that xAI secures the necessary funding to fuel its growth, all while adhering to the strict financial targets Musk has set for the company.
A Closer Look at Armstrong’s Background
Anthony Armstrong is no stranger to high-pressure financial situations. As Morgan Stanley’s global head of tech mergers and acquisitions, Armstrong was intimately involved in some of the largest and most complex deals in the tech industry. His experience advising Musk on the Twitter acquisition placed him at the heart of one of the most high-profile and financially intricate transactions in recent years. The success of that deal was partially attributed to Armstrong’s guidance, and now, Musk has tapped him to apply that expertise to xAI, which has its own set of challenges.
Armstrong’s career at Morgan Stanley saw him advising tech companies on major mergers, acquisitions, and financial restructuring. His deep knowledge of the tech sector, particularly in navigating complex deals involving artificial intelligence and emerging technologies, positions him as a key figure in the ongoing development of xAI.
Moreover, Armstrong’s previous experience working with Musk on the Twitter deal means that he has a deep understanding of Musk’s business philosophy and his unconventional approach to corporate management. This insight will be critical as Armstrong takes on his new role, as he will need to balance Musk’s vision for the future of AI with the practicalities of running a financially sustainable business.
xAI’s Ongoing Funding Round and Valuation
xAI’s financial outlook has been a topic of significant interest in recent months. The company is reportedly in discussions for a new funding round, which could potentially value xAI at approximately $200 billion. However, according to sources familiar with the matter, the deal has yet to be finalized. This fundraising effort is expected to be one of Armstrong’s first major tasks as CFO. Securing this funding will be essential for xAI to remain competitive in the fast-moving AI sector, where companies like Google and Microsoft have already established significant market dominance.
The success of this funding round could provide a much-needed financial boost to xAI, enabling the company to expand its AI research and development efforts. However, investors have been wary of the company’s ability to deliver on Musk’s ambitious promises, especially given the challenges facing both xAI and X. Armstrong’s ability to manage investor expectations while securing the necessary capital will be critical to the company’s long-term success.
The Road Ahead for xAI and X
The road ahead for xAI and X is undoubtedly challenging, but with Armstrong now at the helm of the financial operations, there is hope that the company can regain its financial stability. Armstrong’s expertise in financial strategy, combined with his understanding of Musk’s vision for AI, could help xAI navigate the complex financial landscape it faces.
While the executive departures and internal struggles at xAI have raised concerns about the company’s future, Armstrong’s appointment provides a sense of continuity and leadership during a turbulent period. As CFO, Armstrong will need to balance Musk’s bold ambitions with the practical needs of running a business, all while ensuring that xAI remains competitive in a rapidly evolving tech landscape.
The coming months will be crucial for xAI as it works to secure funding, rebuild advertiser trust, and position itself as a major player in the AI space. With Armstrong now on board, Musk’s AI venture has a better chance of overcoming the financial challenges it faces, but much will depend on how well Armstrong can steer the ship through these choppy waters.
