Haofei Wang, X’s head of engineering, has left the company, marking another major leadership change at the social media platform as it continues to undergo restructuring, reports The Verge. His departure raises fresh concerns about X’s ability to execute its AI-driven transformation while retaining top technical talent.
Wang was responsible for overseeing the company’s core AI infrastructure and engineering initiatives, including work on Grok AI and X’s backend systems. He was also involved in making “likes” on the platform private, a move intended to enhance user privacy.
His exit follows a string of key executive departures that have left gaps in X’s leadership as the company attempts to stabilize both its business and its technical roadmap.
High-Profile Departures and Leadership Reshuffling
Wang’s resignation is part of a broader pattern of leadership turnover. Just recently, Dave Heinzinger, X’s communications chief, left the company after only three months. The shake-up extends beyond Wang and Heinzinger, with CEO Linda Yaccarino continuing to restructure the organization following major exits from X’s sales and content teams.
Despite these gaps, X has recruited new talent to fill leadership roles. Mike Dalton and Uday Ruddaraju, both former engineering leads at Robinhood, have joined the company. Interestingly, their work is not limited to X—they are also involved with Musk’s AI venture, xAI, which has been increasingly integrated into X’s infrastructure.
Financial Challenges and AI Monetization Strategy
As leadership shifts continue, X has been grappling with financial instability. In January Musk admitted that X is “barely breaking even,” with the platform still burdened by $13 billion in debt from his acquisition. The company’s valuation has fluctuated dramatically, dropping to $15 billion in 2023 before rebounding to $44 billion in early 2025.
To boost revenue, X has been pushing aggressive AI monetization strategies. One of the most controversial moves has been restricting Grok AI to Premium+ subscribers, effectively doubling the subscription price to $40 per month. While X argues that this enhances the value of its AI offerings, many users have expressed frustration over the decision.
X has also introduced AI-powered advertising tools aimed at automating ad creation. However, skepticism remains high among advertisers due to ongoing concerns about content moderation. A study published in PLOS ONE found that hate speech has increased on X since Musk’s takeover, leading some brands to question the effectiveness of AI-driven moderation tools.
X’s Transition to an “Everything App” Faces Roadblocks
Musk’s vision for X extends beyond social media, with ambitions to transform it into a WeChat-like platform that integrates social networking, AI, and financial services. A key part of this strategy is the launch of X Money, a Visa-backed digital wallet designed to enable peer-to-peer transactions.
However, regulatory challenges in the U.S. and EU could slow the rollout of X’s financial services. Concerns over data security and compliance with financial regulations may present obstacles to the company’s expansion into the payments sector.
With so many moving parts, Wang’s exit raises deeper questions about X’s ability to execute its ambitious AI and financial transformation.
His departure could reflect internal disagreements over engineering priorities or concerns about the company’s long-term direction. As Musk continues to prioritize AI development and xAI’s integration into X, the ongoing leadership turnover suggests that the company’s transformation is far from smooth.
