OpenAI Hires Former xAI CFO Mike Liberatore After Abrupt Exit

In a move that could further intensify the rivalry between OpenAI and Elon Musk’s xAI, former xAI Chief Financial Officer Mike Liberatore has joined OpenAI just months after leaving Musk’s startup. His hiring marks a major shift in leadership talent within the artificial intelligence space, especially as both companies compete to secure funding, infrastructure, and dominance in the AI race.

Mike Liberatore’s Short Stint at xAI

Mike Liberatore joined xAI earlier this year, where he played a crucial role in the company’s fundraising initiatives and data center expansion projects in Memphis. Despite these responsibilities, his tenure was unexpectedly brief. According to a report by the Wall Street Journal, Liberatore left xAI in July — only three months after starting the role. His sudden departure left a leadership gap in Musk’s fast-growing AI company, which has been aggressively raising funds to scale its infrastructure.

OpenAI Brings Liberatore Onboard

Following his exit from xAI, Liberatore has now joined OpenAI as its Business Finance Officer. According to CNBC, citing a company spokesperson, Liberatore will be responsible for overseeing billions of dollars in AI infrastructure investments, including data centers and advanced computing systems. He will report directly to Sarah Friar, OpenAI’s Chief Financial Officer, with his appointment officially beginning on Tuesday.

This move highlights OpenAI’s commitment to strengthening its financial leadership team as it continues to scale operations and compete with rivals in the rapidly evolving AI market.

Implications for the Musk–Altman Rivalry

Liberatore’s move is likely to deepen the existing tensions between Sam Altman and Elon Musk. The two were once collaborators when they co-founded OpenAI nearly a decade ago. However, Musk eventually parted ways to launch xAI, positioning it as a direct competitor.

Since then, Musk has been openly critical of OpenAI’s trajectory, particularly its shift toward a for-profit model. He has even filed lawsuits against OpenAI, alleging that the company deviated from its original nonprofit mission. Musk has also attempted to block the company’s corporate restructuring plans, which aim to make OpenAI more like a traditional tech business.

Against this backdrop, OpenAI’s decision to hire xAI’s former CFO could be perceived as a strategic — and symbolic — move in the broader battle for AI leadership.

Challenges Ahead for xAI

Liberatore’s departure leaves a significant leadership gap at xAI, particularly as the company accelerates its efforts to expand AI infrastructure, acquire computing chips, and secure new funding rounds. While Mahmoud Reza Banki, a former Tubi executive, continues to serve as CFO of X (Twitter’s parent company), the vacant finance role at xAI could slow down its fundraising momentum.

Reports from Bloomberg also highlight that Jared Birchall, who manages Musk’s family office, is deeply involved in xAI’s financial strategies and fundraising campaigns. However, without a dedicated CFO in place, the company may face added pressure in navigating its ambitious growth plans.

OpenAI’s Strategic Advantage

By bringing in Liberatore, OpenAI gains an experienced executive who has already dealt with large-scale financial operations and infrastructure expansion in the AI sector. His expertise in raising capital and managing tech-driven projects could play a pivotal role as OpenAI invests heavily in data centers and chips to power its advanced AI models.

The timing of this hire also suggests that OpenAI is focused on scaling responsibly while maintaining financial discipline — something crucial as the company handles billions in spending on infrastructure and partnerships.

Conclusion

The hiring of Mike Liberatore by OpenAI marks more than just a personnel change — it underscores the intensifying competition between OpenAI and xAI. With Musk’s company losing a key executive after just three months, and Altman’s startup gaining a seasoned finance leader, the balance of power in the AI race could be shifting.

As both firms continue to compete for talent, funding, and technological breakthroughs, Liberatore’s move may prove to be one of the most significant developments in the ongoing battle for AI supremacy.