In a filing on Thursday, OpenAI rejected claims that it poached xAI employees in order to steal trade secrets tied to xAI’s chatbot, Grok. The company said the allegations were “false and unsubstantiated,” arguing that departing staff had every right to join competitors.
“Under Musk’s leadership, talented xAI employees are leaving in droves, and some are coming to OpenAI to help advance OpenAI’s mission,” the filing stated. “Those employees have every right to go where they choose, and OpenAI has the right to hire them.”
Representatives for xAI did not immediately comment on the filing. OpenAI also declined further comment beyond its court response.
The lawsuit, filed last week in San Francisco federal court, accused OpenAI of a “deeply troubling pattern” of targeting xAI employees in order to gain access to proprietary technology behind Grok — which Musk has claimed is more advanced than OpenAI’s ChatGPT.
The dispute underscores the fierce competition for talent and market share in Silicon Valley’s rapidly expanding AI industry. Musk, who co-founded OpenAI in 2015 before parting ways with the company, has become one of its most outspoken critics. He is already suing OpenAI over its shift to a for-profit model, while OpenAI has countersued Musk for harassment.
The clash also comes against the backdrop of xAI’s broader legal battles. Earlier this week, xAI sued Apple, alleging that the tech giant conspired with OpenAI to suppress rival platforms. Both Apple and OpenAI have asked courts to dismiss that case as well.
In its filing Thursday, OpenAI characterized xAI’s trade-secret complaint as an attempt to distract from its own struggles. “The truth is that xAI is hemorrhaging talent to other competitors, including OpenAI,” the company said.
The case adds yet another chapter to the escalating legal standoff between Musk and OpenAI, a rivalry playing out as both companies jockey to shape the future of artificial intelligence.