Elon Musk’s xAI Sues Former Engineer for Allegedly Stealing Grok Chatbot Secrets

Elon Musk's artificial intelligence startup xAI has filed a lawsuit against former engineer Xuechen Li, accusing him of stealing trade secrets related to its Grok chatbot and sharing them with rival OpenAI. The complaint, lodged in California federal court, alleges Li downloaded confidential files detailing proprietary AI features that xAI claims surpass ChatGPT's capabilities.

Li joined xAI last year as a key engineer involved in developing Grok's architecture. The suit claims he improperly accessed sensitive data after accepting an OpenAI position in July, subsequently selling $7 million worth of xAI shares. During an August 14 meeting, Li reportedly admitted to the theft and attempted data concealment, though forensic analysis later uncovered additional stolen files on his devices.

This legal action marks the latest chapter in Musk's ongoing disputes with OpenAI. The tech billionaire previously sued the AI research company he helped establish, alleging mission drift from its original humanitarian goals. OpenAI countersued for harassment, setting the stage for continued tension between the competing AI ventures.