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Elon Musk's AI venture, xAI, has taken legal action against OpenAI, alleging that its rival firm has been hiring xAI employees to gather access to trade secrets linked to its chatbot, Grok.

As per the lawsuit filed against OpenAI on September 23, 2025 in the United States District Court for the Northern District of California, "OpenAI is targeting those individuals with knowledge of xAI’s key technologies and business plans, including xAI’s source code and its operational advantages in launching data centres, then inducing those employees to breach their confidentiality and other obligations to xAI through unlawful means.”

This is the latest legal action the Musk-led enterprise has taken against its ex-business partner Sam Altm

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