Elon Musk has appointed former Morgan Stanley executive Anthony Armstrong as the chief financial officer for his artificial intelligence venture, xAI, marking a significant leadership change intended to bolster the financial oversight of one of the largest US AI startups. Armstrong will assume a dual role, also heading the finance department for the social media platform X, formerly Twitter. This appointment places an ally of Musk in a crucial position to navigate the complex financial landscapes of both companies.

Armstrong played a key role in Musk's successful acquisition of Twitter for $44 billion. His new responsibilities will extend to revitalizing the financial health of X, which has reportedly struggled with sales declines, including a notable drop during the second quarter compared to the first, suggesting difficulties in capitalizing on earlier spending surges. Meanwhile, xAI, despite recently raising funds at a substantial $200 billion valuation, faces its own financial pressures. Bloomberg News reported earlier this year that xAI is incurring losses of approximately $1 billion per month due to high infrastructure costs, as Musk aggressively invests in data centers to compete with industry giants like OpenAI, Alphabet Inc., and Meta Platforms Inc.

The ex-banker's arrival comes during a period of considerable management upheaval within Musk's empire. His predecessor as xAI CFO, Mike Liberatore, departed after only a few months on the job. Furthermore, Linda Yaccarino stepped down as CEO of X less than three months after the social media arm was absorbed by xAI, reflecting broader organizational restructuring. Armstrong's formal naming as xAI's CFO followed weeks of working with the company, and his X account now prominently features an xAI logo, confirming his new affiliation.

Prior to this, Armstrong served as one of Musk's lieutenants during the billionaire's involvement in President Donald Trump's Department of Government Efficiency, a White House unit created to identify $2 trillion in savings. This effort, however, reportedly sputtered after initial actions early in Trump’s second term. Armstrong's extensive financial background and prior collaboration with Musk position him at the forefront of critical financial challenges and strategic initiatives across two of Musk's most prominent ventures.