Elon Musk’s xAI Sues OpenAI Over Alleged Tech Theft, Poaching Scheme

Core Points - xAI has filed a lawsuit against OpenAI, accusing it of systematically poaching staff and stealing proprietary technology [1][3] - The lawsuit claims OpenAI engaged in a coordinated campaign to recruit key xAI personnel to access sensitive data related to its Grok chatbot [3][8] - OpenAI has denied the allegations, stating it has no tolerance for breaches of confidentiality and described Musk's actions as harassment [5][8] Legal Allegations - The complaint was filed in the US District Court for the Northern District of California [3] - The lawsuit names former xAI engineer Xuechen Li, who is already facing a separate lawsuit for alleged trade secret theft [4][8] - Musk's team argues that OpenAI induced individuals to breach confidentiality agreements [4] Ongoing Feud - This lawsuit marks an escalation in the long-running feud between Musk and OpenAI, a company he co-founded in 2015 [5][6] - Musk has accused OpenAI of abandoning its original nonprofit mission for commercial gain through partnerships with firms like Microsoft [6] Financial Context - In March, Musk transferred ownership of his social media platform X to xAI in an all-stock deal, valuing xAI at $80 billion and X at $33 billion, including $12 billion in debt [7]