xAI Musk sued OpenAI for stealing secrets and poaching staff

The artificial intelligence company xAI, founded by Elon Musk, has filed a new lawsuit against OpenAI, accusing the competitor of systematically stealing trade secrets, Engadget reports.

The lawsuit, filed in California federal court on September 24, 2025, alleges that OpenAI hired former xAI employees to gain access to confidential information about the technology, including the Grok AI chatbot and data center deployment strategies.

The lawsuit alleges a "deeply disturbing pattern" of improperly inducing xAI employees to violate confidentiality agreements and copy code to personal devices that were then used at OpenAI. Specifically, it accuses engineers Xucheng Li and Jimmy Freichur, as well as a senior financial officer who allegedly passed on information about the rapid deployment of data centers.

OpenAI denies the allegations, saying they are yet another attempt at pressure from Musk. The case is part of a long series of lawsuits and disputes between Elon Musk and OpenAI that have spanned several years and include issues of antitrust law and turning OpenAI into a profitable company.

xAI is demanding damages, removal of stolen materials from OpenAI’s systems, and even removal of models created in violation of xAI’s intellectual property. The lawsuits are ongoing, and the parties are preparing for a long court battle.