Overview

• xAI filed a California federal complaint accusing former engineer Xuechen Li of copying confidential Grok development materials in July before resigning for a role at OpenAI.
• The filing says Li sold about $7 million in xAI stock shortly before the alleged copying and departure.
• xAI alleges Li admitted in an August 14 meeting, with his attorney present, to taking files and trying to conceal his actions, and that later reviews found additional undisclosed material.
• OpenAI is not named as a defendant, and Reuters reported that Li, OpenAI representatives and xAI spokespeople did not immediately comment.
• The company seeks a temporary restraining order blocking Li’s move and monetary damages, marking an early court test within a broader Musk–OpenAI rivalry over AI talent and technology.