Elon Musk’s xAI files lawsuit against OpenAI over alleged trade secret theft: All we know
xAI alleges OpenAI targeted ex-employees with knowledge of Grok and confidential business plans.
OpenAI denies wrongdoing, calling the case another harassment attempt by Musk.
The lawsuit adds to Musk’s broader legal battles with OpenAI and Apple over AI competition.
xAI, Elon Musk’s artificial intelligence company has filed a lawsuit against OpenAI, accusing the company of misappropriating confidential information and targeting its employees to gain an edge in the AI race. The lawsuit, which was filed in California on Wednesday, claims OpenAI has been following a “pattern of misconduct” by recruiting former xAI staff members who allegedly had access to sensitive details about its proprietary technology, including its AI chatbot Grok, as well as strategic plans for data center operations.
SurveyAccording to the complaint filed by the company, ChatGPT maker allegedly encouraged employees to violate confidentiality agreements and other obligations. OpenAI, on the other hand, has denied the allegations. According to Reuters, the case is the most recent chapter in Musk’s harassment campaign.
“OpenAI is targeting those individuals with knowledge of xAI’s key technologies and business plans, including xAI’s source code and its operational advantages in launching data centers, then inducing those employees to breach their confidentiality and other obligations to xAI through unlawful means,” the lawsuit said as quoted by Reuters.
Also read: CMF Phone 2 Pro available for under Rs 15,000 during Flipkart Big Billion Days 2025
xAI stated that it became aware of the alleged efforts after previously suing a former engineer, Xuechen Li, accusing him of leaking protected information to OpenAI. However, Li has yet to respond publicly to the allegations. The complaint also names another former employee, Jimmy Fraiture, and an unnamed senior finance executive, but they are not listed as defendants.
This is not the first time Elon Musk has sued OpenAI. Musk has already sued the company over its transition to a for-profit model, and OpenAI has countersued him for harassment. Separately, xAI has sued Apple, accusing the iPhone maker of conspiring with OpenAI to stifle competition.
Ashish Singh
Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile