Tesla CEO Elon Musk’s AI startup xAI has filed a lawsuit against rival OpenAI, alleging theft of trade secrets through hiring its former employees.

Intensifying the ongoing conflict between Musk and OpenAI CEO Sam Altman, a complaint was filed in California federal court that former xAI employees were poached to obtain confidential information related to its AI chatbot Grok.

The lawsuit alleged that OpenAI targeted individuals familiar with xAI’s source code and encouraged them to violate confidentiality agreements and divulge information regarding xAI’s operational advantages in launching data centres.

According to multiple media reports, the lawsuit names former xAI engineer Xuechen Li, who is already involved in a separate case with the company, along with ex-employee Jimmy Fraiture

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