Musk’s xAI sues ex-engineer for allegedly stealing Grok secrets to OpenAI

Ex-engineer Xuechen Li is accused of misappropriating xAI’s proprietary data on advanced AI features said to surpass ChatGPT after accepting a role at OpenAI, underscoring the escalating rivalry between Elon Musk’s xAI and his former venture OpenAI

Elon Musk’s artificial intelligence venture, xAI, has filed a lawsuit against a former employee, accusing him of stealing confidential information linked to the company’s Grok chatbot and moving it to rival firm OpenAI. The case was filed on Thursday, August 28, in a California federal court.

According to the complaint, ex-engineer Xuechen Li allegedly took proprietary data involving advanced AI capabilities described as superior to those in ChatGPT. The lawsuit claims Li misappropriated these materials shortly after accepting a position at OpenAI earlier this month. OpenAI, however, has not been named as a defendant in the case.

Intensifying AI rivalries

The legal action highlights the intensifying competition within the artificial intelligence sector, where companies are aggressively vying for skilled engineers and researchers. Musk himself co-founded OpenAI before leaving the organization, later becoming one of its fiercest critics. Earlier this year, Musk sued OpenAI and its chief executive Sam Altman, alleging the firm strayed from its mission of serving humanity. In response, OpenAI filed a countersuit accusing Musk of harassment.

This latest case follows another lawsuit filed by xAI in Texas earlier in the week against both OpenAI and Apple, alleging monopolistic practices in the integration of AI chatbots into Apple devices.

In the California complaint, xAI asserts that Li worked on the development and training of Grok after joining the startup in 2023. The company alleges that Li downloaded sensitive files in July, around the time he accepted a new role at OpenAI and sold $7 million worth of xAI shares. The filing also claims Li confessed to taking company materials during an August 14 meeting, though further investigation uncovered additional files still in his possession.

xAI is now seeking financial damages along with a court order that would block Li from continuing employment at OpenAI.