xAI Sues OpenAI Over Alleged Trade Secret Theft

September 25, 2025
Elon Musk's xAI has filed a lawsuit against OpenAI, accusing it of stealing trade secrets by hiring former xAI employees. The lawsuit claims OpenAI sought unfair advantages in AI development.
xAI Sues OpenAI Over Alleged Trade Secret Theft
Image: TechCrunch , U.S. Air Force / Trevor Cokley

xAI has filed a lawsuit against OpenAI, accusing the company of stealing trade secrets. The lawsuit, filed in California federal court, alleges that OpenAI engaged in a "deeply troubling pattern" of hiring former xAI employees to gain access to confidential information related to xAI's Grok chatbot, according to the Washington Post.

The complaint claims that OpenAI targeted individuals with knowledge of xAI's key technologies and business plans, including its source code and operational strategies for launching data centers. xAI alleges that these employees were induced to breach their confidentiality obligations through unlawful means.

This legal action marks an escalation in the ongoing rivalry between Elon Musk and OpenAI's Sam Altman. Previously, xAI has filed lawsuits against OpenAI and Apple over alleged anti-competitive conduct. The current lawsuit also follows a separate legal action against former xAI engineer Xuechen Li, who is accused of taking confidential information to OpenAI.

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