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xAI Sues OpenAI, Alleging Theft of Trade Secrets Through Targeted Hiring

The filing marks an early escalation in Musk’s broader legal clash with the lab he cofounded before departing.

Overview

  • xAI filed the complaint in federal court in California this week, accusing OpenAI of using ex‑employees to gain an unfair edge in AI development.
  • The suit claims OpenAI sought access to xAI’s proprietary assets, including source code and data‑center launch plans, by inducing confidentiality breaches.
  • xAI says it uncovered the alleged scheme while probing former engineer Xuechen Li over trade‑secret theft, and Li has not responded publicly.
  • In a separate federal case, xAI sued Apple for allegedly conspiring with OpenAI to suppress rival platforms, and Apple has not commented.
  • Spokespeople for the companies did not immediately respond to requests for comment as the dispute folds into ongoing MuskOpenAI litigation.