Elon Musk's xAI is suing ex-employee for taking confidential info
Elon Musk's AI startup, xAI, is taking legal action against former team member Xuechen Li.
The company says Li took confidential info about their Grok chatbot just before leaving for a new job at OpenAI.
The lawsuit, filed on Thursday in California, claims Li downloaded sensitive files from xAI in July.
Li joined xAI in 2024 and worked on Grok
Li joined xAI last year and worked closely on Grok.
According to the suit, he downloaded trade secrets in July after accepting a job at OpenAI and selling $7 million worth of his xAI stock.
In an August meeting, Li reportedly admitted to taking files; more material was later found on his devices.
Now, xAI wants damages and a court order to keep Li from starting work at OpenAI—plus they're also suing OpenAI and Apple in Texas over bigger AI competition concerns.