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, alleging theft of trade secrets through the hiring of its former employees. This legal action intensifies the ongoing conflict between Musk and OpenAI CEO Sam Altman.
The complaint, filed in a California federal court, claims that former xAI employees were poached to obtain confidential information related to its AI chatbot, Grok. The lawsuit alleges that OpenAI specifically targeted individuals familiar with xAI’s source code and encouraged them to violate confidentiality agreements by divulging information about xAI’s operational advantages, particularly in launching data centres.
According to multiple media reports, the lawsuit names former xAI engineer Xuechen Li—who is already involved in a separate case with the company—along with ex-employee Jimmy Fraiture and an unnamed senior finance executive.
This case marks the latest legal move Musk has initiated against OpenAI, a company he co-founded with Altman in 2015 before departing in 2018 following an unsuccessful attempt to gain control. Musk had previously attempted to block OpenAI’s plans to convert to a for-profit enterprise and accused Altman of violating OpenAI’s founding principles by collaborating with Microsoft.
In response, OpenAI stated that Musk had previously endorsed a for-profit model and is now acting out of jealousy.
Last month, Musk also filed a lawsuit against OpenAI and Apple, alleging anti-competitive behavior and claiming that Apple preferred ChatGPT in its App Store. Apple denied these allegations, insisting, “The App Store is designed to be fair and free of bias,” and added that recommendations are based on charts and algorithms.
Meanwhile, competition for AI expertise in Silicon Valley is intensifying, with tech giants and well-funded startups announcing bonuses to attract talent. Recently, Altman lost several key researchers to Meta, while Musk’s xAI is also actively seeking to recruit skilled professionals.
India is OpenAI’s second-largest market globally, after the United States, and according to CEO Sam Altman, it may soon become the company’s biggest market.
*Disclaimer: This story is from a syndicated feed. No changes have been made other than the headline.*
https://www.freepressjournal.in/tech/elon-musks-xai-files-lawsuit-against-openai-alleges-theft-of-trade-secrets
