Elon Musk’s xAI Sues OpenAI Over Alleged Trade Secret Theft Amid Ongoing AI Rivalry

The battle between Elon Musk and OpenAI has taken another turn. This time, Musk’s own AI startup, xAI, has filed a lawsuit in federal court in California, claiming that OpenAI stole its trade secrets to gain an advantage in developing artificial intelligence. The complaint alleges that OpenAI broke both California and federal laws by inducing former xAI employees to take and share confidential materials. The filing names researcher Xuechen Li, engineer Jimmy Fraiture, and a senior finance executive as the employees involved. xAI argues that by recruiting these individuals and accessing sensitive information, OpenAI secured knowledge that gave it an unfair competitive edge.