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September 25, 2025Coinpaper logoCoinpaper

Elon Musk’s xAI Takes OpenAI to Court Over Secret AI Battles

Key Highlights Musk’s xAI takes OpenAI to court in explosive AI rivalry Apple unexpectedly dragged into high-stakes legal fight Trade secrets and secret hires push AI war to new level Musk’s xAI Takes OpenAI To Court Over Trade Secrets Elon Musk’s company xAI has filed a lawsuit against OpenAI, accusing the ChatGPT maker of illegally obtaining trade secrets through a targeted recruitment ￰0￱ complaint, filed in a California federal court, alleges that OpenAI sought to lure away former xAI employees to gain insider knowledge about the Grok chatbot and other proprietary ￰1￱ argues that these new hires leaked confidential material protected by non-disclosure agreements, including details about business plans and ways to optimize large-scale data ￰2￱ discovery allegedly came during an internal investigation into former xAI engineer Xuechen Li, accused of passing sensitive data to ￰3￱ has yet to respond publicly to the ￰4￱ addition to Li, engineer Jimmy Frature and a senior finance executive have reportedly joined OpenAI from Musk’s ￰5￱ to xAI, this move forms part of a larger effort by its rival to weaken competition in the booming AI ￰6￱ Pulled Into The Fight The legal drama doesn’t stop ￰7￱ a separate announcement, xAI revealed it had also filed a complaint against Apple, accusing the tech giant of colluding with OpenAI to restrict ￰8￱ has not responded to the claims at the time of writing.

A Growing Legal Battlefield The lawsuits come against a backdrop of escalating ￰9￱ this year, Musk sued OpenAI for abandoning what he called its original non-profit mission, accusing it of prioritizing profits over its stated ￰10￱ hit back with counterclaims, accusing Musk of harassment and unfair tactics. Meanwhile, Musk’s own allies at the Xai project have filed lawsuits against him too, souring relationships within the AI ￰11￱ multiple players now caught in overlapping legal battles, the future of cooperation and competition in the field of artificial intelligence looks more uncertain than ever.

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