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xAI Sues OpenAI Over Alleged Theft of Grok Trade Secrets

The complaint spotlights targeted recruiting of former xAI staff as the latest flashpoint in the rivals' legal fight.

Overview

  • xAI filed the case in Northern California federal court, accusing OpenAI of misappropriating confidential information tied to its Grok chatbot.
  • The filing alleges OpenAI induced former xAI employees, including Xuechen Li, Jimmy Fraiture, and a senior finance executive, to share protected information.
  • xAI says the alleged trade secrets include Grok source code along with operational and data‑center strategies.
  • The complaint argues the conduct could speed OpenAI’s product development and erode xAI’s ability to benefit from its own advances.
  • The lawsuit follows xAI’s August action against ex‑engineer Li, with the new case pending and no court ruling or substantive public response from OpenAI reported.