xAI Sues Engineer for Alleged Trade Secret Theft to OpenAI

In a filing made in California federal court last Thursday, xAI, Elon Musk’s artificial intelligence startup, alleges that a former engineer, Xuechen Li, stole confidential information regarding their advanced Grok chatbot. The stolen data is said to have been taken to OpenAI, Li’s new employer.

The complaint highlights the competitive landscape in AI technology and the relentless race among industry leaders for top-tier talent. The lawsuit asserts that Li, during his tenure at xAI last year, played a significant role in developing and training Grok. The company claims that Li took trade secrets, including cutting-edge AI technologies superior to those offered by ChatGPT, prior to joining OpenAI earlier this month.

As of Friday, representatives from both OpenAI and xAI, as well as their respective legal teams and spokespersons, have yet to respond to requests for comment. It is important to note that OpenAI is not a party in this lawsuit.

The lawsuit underscores the intensifying rivalry between Musk’s company and OpenAI. Previously, Musk filed separate lawsuits against both OpenAI and its CEO, Sam Altman, alleging deviations from their original mission to benefit humanity. OpenAI counter-sued Musk in April for harassment.

On Monday, xAI filed another lawsuit, this time in Texas, accusing OpenAI and Apple of monopolizing the market for AI chatbots on Apple devices.

According to the complaint, Li admitted to stealing company documents and concealing his actions during a meeting on August 14. The lawsuit also claims that additional stolen materials were discovered on Li’s devices following this admission, which he had failed to disclose. xAI is seeking unspecified monetary damages and a restraining order to prevent Li from joining OpenAI.