xAI sues OpenAI over alleged trade-secret theft

Elon Musk’s xAI has filed a lawsuit against OpenAI in California federal court, alleging that the ChatGPT maker stole trade secrets by hiring former xAI employees who allegedly took proprietary code and operational know‑how.

Key claims

• xAI alleges former engineer Xuechen Li took confidential data before joining OpenAI and has filed a separate suit against him.
• The complaint names another ex-xAI engineer, Jimmy Fraiture, accused of copying source code and transferring it to personal devices prior to joining OpenAI.
• xAI also claims a senior finance executive brought proprietary “rapid data‑center deployment” methods to OpenAI.
• xAI’s lawyers describe the conduct as part of a “broader and deeply troubling pattern” of trade-secret misappropriation and unfair competition.

Context

OpenAI has not yet commented publicly on the latest suit. The legal battle adds to expanding litigation between Musk and OpenAI, including prior suits over app rankings and OpenAI’s corporate changes. The dispute highlights intense competition for talent and technology in the AI industry.

Sources and further reading

• Bloomberg Tax: xAI escalates fight with new trade-secrets lawsuit
• Newsmax: xAI sues OpenAI over alleged trade-secret theft

Join the conversation

What do you think — aggressive competition or illegal recruitment? Share your thoughts below.

Originally reported by multiple outlets.