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'Deeply troubling pattern': Musk's xAI accuses OpenAI of 'stealing' trade secrets
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'Deeply troubling pattern': Musk's xAI accuses OpenAI of 'stealing' trade secrets

FP News Desk • September 26, 2025, 07:54:05 IST
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The lawsuit claims that OpenAI was engaged in a “deeply troubling pattern” of hiring former xAI employees to gain access to the trade secrets of its AI chatbot Grok. It further said that Altman’s company is pursuing unfair advantages in the race to develop AI technology

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'Deeply troubling pattern': Musk's xAI accuses OpenAI of 'stealing' trade secrets
This combination of pictures shows (L-R) Elon Musk in Los Angeles on May 6, 2024 and Open AI CEO Sam Altman in Seoul on February 4, 2025. File image/ AFP

Elon Musk’s artificial intelligence startup xAI has sued rival OpenAI, accusing Sam Altman’s company of stealing trade secrets in a new lawsuit.

The lawsuit claims that OpenAI was engaged in a “deeply troubling pattern” of hiring former xAI employees to gain access to the trade secrets of its AI chatbot Grok. It further said that Altman’s company is pursuing unfair advantages in the race to develop AI technology.

“OpenAI is targeting those individuals with knowledge of xAI’s key technologies and business plans, including xAI’s source code and its operational advantages in launching data centers, then inducing those employees to breach their confidentiality and other obligations to xAI through unlawful means,” the lawsuit states.

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Musk and xAI have filed multiple lawsuits against OpenAI in recent years, reflecting a longstanding feud between Musk and Altman. Their relationship has become increasingly strained as Altman and OpenAI have gained influence in the tech industry, with Musk previously trying to prevent the AI company from transitioning to a for-profit model.

What has the lawsuit claimed?

The latest complaint highlighted the role of an engineer named  Xuechen Li, who used to work with xAI but later moved to OpenAI. Musk’s company claimed that Li took confidential information to the ChatGPT maker.

The complaint alleges that OpenAI recruited former xAI engineer Jimmy Fraiture, an unnamed senior finance executive, and Li in an effort to gain access to xAI’s trade secrets. Representatives for both companies did not immediately respond to requests for comment on the matter on Thursday.

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The lawsuit also contained a screenshot of an email correspondence between xAI’s attorney Alex Spiro and a former employee, accusing them of breaching their confidentiality obligations.

The ex-employee, whose name was redacted from the screenshot, responded to Spiro by saying, “suck my di**”.

xAI sues Apple too

xAI and X filed a sweeping US antitrust lawsuit Monday against Apple and OpenAI, alleging the tech giants formed an illegal partnership to stifle competition in artificial intelligence and smartphone markets.

The 61-page complaint, filed in federal court in Texas, accuses Apple and OpenAI of entering an exclusive deal that makes OpenAI’s ChatGPT the only generative AI chatbot integrated into Apple’s iPhone operating system, while blocking rivals like xAI’s Grok.

“This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence,” the lawsuit states.

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With inputs from agencies

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