xAI Accuses OpenAI of Employee Poaching and Trade Secret Theft in New Lawsuit

Elon Musk's artificial intelligence venture xAI has filed a federal lawsuit against OpenAI, alleging systematic poaching of employees and theft of confidential business information. The complaint, lodged in California's Northern District Court, claims OpenAI targeted key xAI personnel to access proprietary data including Grok's source code and data center operations.

The lawsuit specifically names former xAI engineers Xuechen Li and Jimmy Fraiture, along with an unnamed senior executive believed to be ex-CFO Mike Liberatore. xAI asserts these recruitment efforts constituted unlawful attempts to obtain trade secrets and strategic information.

OpenAI has dismissed the allegations as "the latest chapter in Mr. Musk's ongoing harassment," setting the stage for another legal confrontation between the AI rivals. This dispute extends the well-documented feud between Musk and OpenAI CEO Sam Altman, marking a new escalation in their competitive tensions.