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Musk’s xAI Sues Ex-Employee for Stealing Grok’s Secrets

Elon Musk's xAI accuses former engineer Xuechen Li of misappropriating trade secrets and confidential AI code worth millions, potentially aiding OpenAI's competitive edge.

Summary by PC Mag
The lawsuit claims that the employee copied data that could be used by xAI’s competitors, including OpenAI, giving them a 'potentially insurmountable competitive advantage' in the AI race.
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The company xAI, owned by U.S. billionaire Elon Musk, sued an ex-employee of the company for stealing business secrets and selling shares for $7 million before joining OpenAI. The lawsuit against engineer Xuechen Li, who worked on the development of Grok, the chatbot Musk seeks to compete with ChatGPT, was filed before a federal court in California, Reuters reported. Li stole files on “avant-garde technologies with features superior to ChatGPT.”…

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se7en.ws broke the news in on Sunday, August 31, 2025.
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