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xAI Sues OpenAI, Alleging Theft of Grok Trade Secrets Through Staff Poaching

OpenAI rejects the claims as harassment by Elon Musk.

Overview

  • The complaint filed in the U.S. District Court for the Northern District of California alleges OpenAI targeted former xAI employees to obtain Grok’s source code and rapid data‑center deployment know‑how.
  • xAI names ex‑engineer Xuechen Li, early engineer Jimmy Fraiture, and an unnamed senior finance executive, accusing them of violating confidentiality at OpenAI’s urging.
  • xAI previously secured a temporary court order on September 3 limiting Li from working on or communicating about AI technology with OpenAI in a separate trade‑secret case.
  • OpenAI denies wrongdoing, characterizes the filing as the latest chapter in Musk’s harassment, and says it has no interest in other labs’ trade secrets.
  • The case expands a broader legal feud between Musk’s company and OpenAI and could influence how courts address trade‑secret protections and hiring practices in the AI sector.