Musk’s xAI sues engineer for allegedly taking secrets to OpenAI

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By Blake Brittain

(Reuters) -Elon Musk’s artificial intelligence startup xAI has sued a former engineer at the company for allegedly stealing trade secrets related to its Grok chatbot and taking them to rival OpenAI.

Musk’s company said in the complaint filed on Thursday in California federal court that Xuechen Li stole confidential information related to “cutting-edge AI technologies with features superior to those offered by ChatGPT” to bring to his new job at OpenAI earlier this month.

Li, representatives of OpenAI and attorneys and spokespersons for xAI did not immediately respond to requests for comment on Friday. OpenAI is not a defendant.

The complaint underscores the rivalry between Musk’s company and OpenAI and a fierce battle among tech companies for AI talent.

Musk, an OpenAI co-founder, has separately sued the company and its CEO, Sam Altman,  for allegedly deviating from its original mission to benefit humanity. OpenAI countersued Musk in April for harassment.

Musk’s xAI filed another lawsuit against OpenAI and Apple in Texas on Monday for allegedly monopolizing the market for AI chatbots on Apple devices.

The new lawsuit said Li began working as an engineer for xAI last year, where he helped train and develop Grok. The company said Li took its trade secrets in July, shortly after accepting a job from OpenAI and selling $7 million in xAI stock.

Musk’s startup said that the secrets could allow OpenAI to bolster ChatGPT with xAI’s “more innovative AI and imaginative features.”

The lawsuit said Li admitted to stealing company files and “covering his tracks” during a meeting on August 14, and that the company later found additional stolen material on his devices that he had not disclosed.

Musk’s AI company asked the court for an unspecified amount of monetary damages and a restraining order blocking Li’s move to OpenAI.

(Reporting by Blake Brittain in WashingtonEditing by Matthew Lewis)