Elon Musk’s xAI has taken legal action against rival company OpenAI.
The case accuses OpenAI of stealing trade secrets to gain an unfair edge in the competitive field of AI technology.
According to xAI, the alleged theft involved hiring former employees who had access to key company information.
Elon Musk’s artificial intelligence startup, xAI, has taken legal action against rival company OpenAI, filing a lawsuit in California federal court. The case accuses OpenAI of stealing trade secrets to gain an unfair edge in the competitive field of AI technology. According to xAI, the alleged theft involved hiring former employees who had access to key company information, including details about xAI’s AI chatbot Grok.
Survey“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 states, according to Reuters.
An OpenAI spokesperson denied the allegations in a statement, calling the lawsuit “the latest chapter in Mr. Musk’s ongoing harassment” against the company.
Also read: OpenAI introduces ChatGPT Pulse for AI-powered morning briefings: How it works
xAI said it discovered the alleged plan to undermine the company after previously filing a lawsuit against former engineer Xuechen Li. The company claims Li took confidential information to OpenAI, which led to accusations of trade secret theft in a separate case.
In addition to Li, xAI alleges that OpenAI hired former company engineer Jimmy Fraiture and a senior finance executive to gain access to its trade secrets.
For those unaware, xAI has also filed a separate lawsuit against Apple, accusing the tech giant of conspiring with OpenAI to suppress competing AI platforms.
Also read: Intel in talks with Apple over potential investment amid struggles
The legal battles between Musk and OpenAI are extensive. Musk is suing OpenAI over its conversion to a for-profit company, while OpenAI has countersued him for harassment.
These disputes highlight the intense competition in Silicon Valley for AI talent and technology, as companies race to secure their place in the rapidly growing artificial intelligence market.
Also read: Elon Musk’s X loses legal challenge against Indian content removal orders
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
