Technology8/30/2025Engadget

xAI sues an ex-employee for allegedly stealing trade secrets about Grok

xAI sues an ex-employee for allegedly stealing trade secrets about Grok

Here is a 188-word summary of the news article: xAI, Elon Musk's artificial intelligence company, has filed a lawsuit against former employee Xuechen Li, alleging that he stole the company's trade secrets about its AI technology called Grok before leaving to join OpenAI. According to the lawsuit, Li copied confidential documents from an xAI laptop to his personal devices, including "cutting-edge AI technologies" that could provide a competitive edge for rival companies. The lawsuit claims Li took extensive measures to conceal his actions, such as renaming files and deleting browser history. It also alleges that Li asked to buy back $7 million worth of company shares before leaving xAI for OpenAI. xAI is seeking a temporary restraining order to force Li to give up access to any devices or services containing the stolen information and to block him from working at OpenAI or other competitors until the trade secrets are recovered. The lawsuit comes amid a fierce talent war in the AI industry, with companies offering massive pay packages to poach top researchers from rivals. It also follows xAI's previous lawsuits against OpenAI and Apple over alleged AI market monopolization.

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