Elon Musk’s xAI Accuses OpenAI of Trade Secret Theft in New Lawsuit

Elon Musk's artificial intelligence venture xAI has escalated its legal battle with OpenAI, filing a federal lawsuit alleging systematic theft of proprietary technology. The complaint, lodged in California, claims OpenAI orchestrated a targeted campaign to poach xAI employees with access to critical trade secrets, including source code and data center deployment strategies.

One engineer reportedly admitted in a handwritten confession to misappropriating code following encrypted communications with an OpenAI recruiter. The lawsuit marks Musk's second legal action against OpenAI this year, reflecting growing tensions between the AI rivals since his 2018 departure from OpenAI's board.

The allegations center on recruitment tactics allegedly designed to extract xAI's operational "secret sauce," with one executive notably refusing to sign confidentiality documents after joining OpenAI. Legal observers anticipate the case could set important precedents for intellectual property protection in the competitive AI sector.