Elon Musk’s artificial intelligence venture, Xai, has accused its competitor OpenAI of unlawfully appropriating trade secrets in a fresh lawsuit, marking the latest in Musk’s ongoing legal confrontations with his former associate, Sam Altman.
Filed on Wednesday in a California federal court, the lawsuit claims that OpenAI is involved in a “deeply nasty pattern” of behavior, where former Xai employees are allegedly hired to gain access to crucial trade secrets related to the AI chatbot Grok. Xai asserts that OpenAI is seeking unfair advantages in the fierce competition to advance AI technology.
According to the lawsuit, “OpenAI specifically targets individuals familiar with Xai’s core technologies and business strategies, including operational benefits derived from Xai’s source code and data center initiatives, which leads these employees to violate their commitments to Xai through illicit means.”
Musk and Xai have pursued multiple lawsuits against OpenAI over the years, stemming from a long-standing rivalry between Musk and Altman. Their relationship has soured significantly as Altman’s OpenAI continues to gain power within the tech industry, while Musk has pushed back against AI startup transitions into for-profit entities. Musk attempted to intervene before AI startups shifted to profit-driven models.
Xai’s recent complaint alleges that it uncovered a suspected campaign intended to sabotage the company while probing the trade secret theft allegations against former engineer Xuechen Li. Li has yet to respond to the lawsuit.
OpenAI has dismissed Xai’s claims, dubbing the lawsuit as part of Musk’s ongoing harassment against the company.
A spokesperson for OpenAI stated, “This latest lawsuit represents yet another chapter in Musk’s unrelenting harassment. We maintain strict standards against breaches of confidentiality or interest in trade secrets from other laboratories.”
The complaint asserts that OpenAI hired former Xai engineer Jimmy Fraiture and an unidentified senior finance official in addition to Li for the purpose of obtaining Xai’s trade secrets.
Additionally, the lawsuit includes screenshots from emails sent in July by Musk and Xai’s attorney Alex Spiro to a former Xai executive, accusing them of breaching their confidentiality obligations. The former employee, whose name was redacted in the screenshot, replied to Spiro with a brief email stating, “Suck my penis.”
After the newsletter promotion
Before becoming a legal adversary of OpenAI, Musk co-founded the organization with Altman in 2015, later departing in 2018 after failing to secure control. Musk accused Altman of breaching the “founding agreement” intended to enhance humanity, arguing that OpenAI’s partnership with Microsoft for profit undermined that principle. OpenAI and Altman contend that Musk had previously supported the for-profit model and is now acting out of jealousy.
Musk, entangled in various lawsuits as both a plaintiff and defendant, filed suit against OpenAI and Apple last month concerning anti-competitive practices related to Apple’s support of ChatGPT within its App Store. The lawsuit alleges that his competitors are involved in a “conspiracy to monopolize the smartphone and AI chatbot markets.”
Altman took to X, Musk’s social platform, stating, “This is a surprising argument given Elon’s claims that he is manipulating X for his own benefit while harming rivals and individuals he disapproves of.”
Xai’s new lawsuit exemplifies the high-stakes competition in Silicon Valley to recruit AI talent and secure market dominance in a rapidly growing multi-billion-dollar industry. Meta and other firms have actively recruited AI researchers and executives, aiming to gain a strategic edge in developing more advanced AI models.
Source: www.theguardian.com
