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Musk’s xAI Sues OpenAI, Alleging Stolen Code and Trade Secrets

xAI alleges OpenAI recruited staff to steal Grok chatbot trade secrets, including source code and data center strategies, disrupting xAI’s business and seeking damages in federal court.

  • Elon Musk's artificial intelligence startup xAI has sued rival OpenAI in California federal court for allegedly stealing its trade secrets to gain an unfair advantage in the race to develop AI technology.
  • XAI said it discovered the alleged campaign to undermine the company while investigating allegations of trade secret theft against former engineer Xuechen Li, who it has accused of taking confidential information to the ChatGPT maker in a separate lawsuit.
  • According to the complaint, OpenAI hired away former company engineer Jimmy Fraiture and an unnamed senior finance executive in addition to Li in order to obtain xAI trade secrets.
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Channel News Asia broke the news in Singapore on Thursday, September 25, 2025.
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