Key Takeaways

  • According to the Financial Times, citing sources familiar with the matter, Anthony Armstrong, a former Morgan Stanley dealmaker and long-time advisor to Elon Musk, has been appointed Chief Financial Officer of xAI and social media platform X. He will oversee the financial functions of both companies, succeeding X's former finance chief Mahmoud Reza Banki, and taking on the role of CFO at xAI following the departure of former CFO Mike Liberatore to rival OpenAI. CFO Dive previously reported that Liberatore moved to OpenAI as its finance chief.
  • This appointment follows Musk's announcement in March 2025 that xAI would acquire X in an all-stock deal. According to a post by Musk on X, the transaction values the combined entity at approximately $113 billion. Musk stated in the post that the future of the two platforms is "deeply intertwined" and that the merger "will unlock immense potential by combining xAI's advanced AI capabilities with X's vast user reach."
  • Shawn Cole, president of boutique executive search firm Cowen Partners, said in an email to CFO Dive that choosing Armstrong as CFO signals that xAI and X are "placing near-term focus on X's monetization and cost discipline, as well as xAI's continued capital raising." Cole noted that with this appointment, "one can expect a heavy financial agenda: large-scale fundraising, balance sheet cleanup at X, and aggressive capital expenditure on AI infrastructure." He also pointed out that "it's worth noting Musk has never shied away from using leverage to acquire and expand his companies, making an investment-banking background CFO a more logical choice."

In-Depth Analysis

Armstrong's appointment "fits Musk's established pattern of elevating trusted dealmakers from his network to key operational roles, especially those who have already executed deals for him," Cole told CFO Dive. "From a hiring perspective, it's a smart move because he needs people who can operate within his pace and ecosystem, and he has a deep bench of talent across his entities to draw from."

During his tenure at Morgan Stanley, Armstrong served as global head of technology M&A since 2015 and advised on Musk's 2022 acquisition of Twitter (now X). According to Time magazine, when Musk led the Department of Government Efficiency (DOGE), Armstrong served as a senior advisor to the Office of Personnel Management, which oversees the federal workforce.

Cole said Armstrong's performance during the Twitter acquisition and subsequent privatization "foreshadows tighter integration and centralized control of the 'super app' and AI stack."

Armstrong will take over financial responsibilities at both companies as the AI race intensifies, with leading players competing for capital, talent, and prestige in an expanding market.

Competition between ChatGPT maker OpenAI and xAI, which owns the chatbot Grok, has escalated in recent months. CFO Dive previously reported that xAI's former finance chief Mike Liberatore abruptly departed and subsequently became OpenAI's finance head. Both companies, along with other AI firms like Anthropic, have also taken steps to secure additional funding amid a competitive market and rising computing costs.

For example, Anthropic recently raised $13 billion in a funding round at a valuation of $183 billion, while OpenAI completed a $10.3 billion secondary stock sale, CNBC reported. Last month, according to CNBC citing sources, xAI reportedly secured a $10 billion funding round at a $200 billion valuation, following a previous $10 billion round in July.

Musk posted on his X account calling the report "fake news" and stating that xAI "is not raising any capital currently."

Nevertheless, the need for future funding may also explain Armstrong's appointment as CFO of Musk's AI entity. Cole said that while many companies may be "returning to basics," favoring CFOs with traditional operational or CPA backgrounds, "the AI industry is still in a bull market, and investment-banking background CFOs are highly sought after for their expertise in deep infrastructure investment and financing."

xAI did not immediately respond to a request for comment.