According to the complaint, filed on Wednesday, OpenAI engaged in a “deeply troubling pattern” of recruiting former xAI staff to obtain confidential information related to the company’s AI chatbot, Grok, as well as its source code and strategies for launching data centers.
“OpenAI is targeting those individuals with knowledge of xAI’s key technologies and business plans … then inducing those employees to breach their confidentiality and other obligations to xAI through unlawful means,” the filing stated.
Broader Legal Battle
The lawsuit claims OpenAI hired away at least three individuals, including former engineer Xuechen Li, ex-engineer Jimmy Fraiture, and an unnamed senior finance executive. Li, who is accused of taking confidential information to OpenAI in a separate case, has not yet responded publicly to the allegations. Fraiture, who is not listed as a defendant, could not be reached for comment.
This fresh lawsuit adds to Musk’s widening legal war with OpenAI. The Tesla CEO has previously sued the company over its transition to a for-profit model, while OpenAI has countersued Musk, accusing him of harassment.
Separately, xAI has also filed a federal lawsuit against Apple, alleging it conspired with OpenAI to suppress rival platforms. Apple has not responded to the claims.
High-Stakes AI Race
The litigation underscores the intensifying competition in Silicon Valley’s artificial intelligence sector, where tech giants and startups are racing to secure top talent and dominate the market. With AI systems becoming central to everything from chatbots to data infrastructure, allegations of employee poaching and trade secret theft are emerging as flashpoints in the rivalry.
Spokespersons for both OpenAI and xAI declined to comment on the latest lawsuit.