Elon Musk’s xAI Files Lawsuit Against OpenAI, Alleges Theft Of Trade Secrets
Tesla CEO Elon Musk’s AI startup, xAI, has filed a lawsuit against rival OpenAI, accusing the company of stealing trade secrets by hiring its former employees. The complaint, submitted to a California federal court, alleges that OpenAI poached xAI staff to gain access to confidential information related to xAI’s AI chatbot, Grok.
According to the lawsuit, OpenAI specifically targeted individuals with knowledge of xAI’s source code and encouraged them to breach confidentiality agreements. These employees were allegedly persuaded to disclose sensitive information regarding xAI’s operational advantages in launching data centers.
Multiple media reports indicate that the lawsuit names former xAI engineer Xuechen Li—who is already involved in another legal case with xAI—along with ex-employee Jimmy Fraiture and an unnamed senior finance executive.
This legal action represents the latest chapter in the escalating conflict between Musk and OpenAI CEO Sam Altman. Musk co-founded OpenAI with Altman in 2015 but left the company in 2018 after an unsuccessful attempt to take control.
In the past, Musk has attempted to block OpenAI’s transition to a for-profit model and accused Altman of betraying the organization’s founding principles by partnering with Microsoft. OpenAI, however, maintains that Musk originally supported the for-profit structure and is now acting out of jealousy.
Last month, Musk also filed a lawsuit against OpenAI and Apple, alleging anti-competitive behavior. He claimed that Apple favored ChatGPT in its App Store, disadvantaging Musk’s AI offerings. Apple denied these allegations, stating, “The App Store is designed to be fair and free of bias,” and emphasized that app recommendations are purely based on charts and algorithms.
The competition for AI talent is intensifying across Silicon Valley, with tech giants and well-funded startups offering bonuses to attract skilled professionals. Recently, Altman lost several key researchers to Meta, while Musk’s xAI continues its efforts to recruit top talent.
OpenAI’s CEO Sam Altman noted that India is currently the company’s second-largest market after the United States and suggested it could soon become OpenAI’s biggest market worldwide.
*Disclaimer: This story is based on a syndicated feed. The headline has been updated; no other changes have been made.*
https://www.freepressjournal.in/tech/elon-musks-xai-files-lawsuit-against-openai-alleges-theft-of-trade-secrets
