Musk’s xAI in legal battle with ex-engineer

The post Musk’s xAI in legal battle with ex-engineer appeared on BitcoinEthereumNews.com. Elon Musk’s artificial intelligence startup xAI has launched a lawsuit against a former engineer accused of stealing proprietary information to take to rival OpenAI.  The lawsuit came just as Taiwan Semiconductor Manufacturing Company (TSMC) unveiled a global system designed to help companies better manage and protect their intellectual property. Musk’s xAI in legal battle with ex-engineer Musk’s xAI filed its complaint on Thursday, August 28, in a California federal court, alleging that former employee Xuechen Li stole confidential material tied to Grok, the company’s conversational AI chatbot, and carried it to his new role at OpenAI earlier this month. According to the filing, Li helped train and develop Grok during his tenure at xAI, which began last year. The company alleges he downloaded and concealed files shortly after accepting a job offer from OpenAI and selling $7 million of his xAI stock in July. The lawsuit claims Li admitted to theft during a meeting on August 14, but investigators later discovered additional sensitive material on his devices. xAI is seeking monetary damages and a restraining order preventing Li from working for OpenAI. It’s important to note that OpenAI itself is not a defendant in the case. Musk, who co-founded OpenAI in 2015 before leaving its board three years later, has become one of the company’s fiercest critics. He is currently pursuing separate lawsuits against OpenAI and chief executive Sam Altman for allegedly abandoning its initial non-profit mission, and earlier this week filed an antitrust case against OpenAI and Apple in Texas over alleged monopolization of AI chatbots on Apple devices. TSMC promotes trade secrets registry While Musk’s startup opted for litigation, TSMC, the world’s largest contract chipmaker, took a more systematic approach to trade secret protection. The Taiwanese company said it would begin marketing its proprietary registry system to partners…

Aug 30, 2025 - 05:00
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Musk’s xAI in legal battle with ex-engineer

The post Musk’s xAI in legal battle with ex-engineer appeared on BitcoinEthereumNews.com.

Elon Musk’s artificial intelligence startup xAI has launched a lawsuit against a former engineer accused of stealing proprietary information to take to rival OpenAI.  The lawsuit came just as Taiwan Semiconductor Manufacturing Company (TSMC) unveiled a global system designed to help companies better manage and protect their intellectual property. Musk’s xAI in legal battle with ex-engineer Musk’s xAI filed its complaint on Thursday, August 28, in a California federal court, alleging that former employee Xuechen Li stole confidential material tied to Grok, the company’s conversational AI chatbot, and carried it to his new role at OpenAI earlier this month. According to the filing, Li helped train and develop Grok during his tenure at xAI, which began last year. The company alleges he downloaded and concealed files shortly after accepting a job offer from OpenAI and selling $7 million of his xAI stock in July. The lawsuit claims Li admitted to theft during a meeting on August 14, but investigators later discovered additional sensitive material on his devices. xAI is seeking monetary damages and a restraining order preventing Li from working for OpenAI. It’s important to note that OpenAI itself is not a defendant in the case. Musk, who co-founded OpenAI in 2015 before leaving its board three years later, has become one of the company’s fiercest critics. He is currently pursuing separate lawsuits against OpenAI and chief executive Sam Altman for allegedly abandoning its initial non-profit mission, and earlier this week filed an antitrust case against OpenAI and Apple in Texas over alleged monopolization of AI chatbots on Apple devices. TSMC promotes trade secrets registry While Musk’s startup opted for litigation, TSMC, the world’s largest contract chipmaker, took a more systematic approach to trade secret protection. The Taiwanese company said it would begin marketing its proprietary registry system to partners…

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