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Musk's xAI sues engineer for allegedly taking secrets to OpenAI
Former engineer admitted to stealing xAI's confidential AI technology files to advance OpenAI’s chatbot capabilities, with $7 million in stock sold prior to the theft.
- Elon Musk’s AI startup xAI sued former engineer Xuechen Li in California federal court on August 29, 2025, for allegedly stealing trade secrets and taking them to OpenAI.
- The lawsuit follows Li’s resignation from xAI three days after July 25, 2025, when he had sold $7 million in stock and allegedly copied confidential files maliciously.
- XAI claims that on August 14, 2025, Li acknowledged stealing confidential information connected to its Grok chatbot and admitted to efforts to hide the misconduct while refusing to provide investigators with access credentials.
- The complaint alleges that on July 25, 2025, Li stole information that could improve ChatGPT’s capabilities, and xAI is pursuing financial compensation as well as legal measures to prevent Li from joining OpenAI.
- This lawsuit highlights the fierce competition among AI companies like xAI and OpenAI for talent and technology amid ongoing legal battles and government partnerships in the AI sector.
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Total News Sources6
Leaning Left1Leaning Right1Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 17%
C 67%
R 17%
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