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By Kunal Shrivastav , 28 September 2025
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xAI Initiates Legal Action Against OpenAI Over Alleged Trade Secret Theft

Elon Musk's artificial intelligence startup, xAI, has filed a lawsuit against OpenAI, accusing the company of stealing proprietary trade secrets. The lawsuit, lodged in the U.S. District Court for the Northern District of California, alleges that OpenAI engaged in unethical hiring practices to recruit former xAI employees with access to confidential information about xAI's AI chatbot, Grok. The complaint specifically names former xAI engineer Xuechen Li, who is accused of misappropriating trade secrets before joining OpenAI.

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