OpenAI seeks dismissal of xAI trade-secret suit
OpenAI filed a motion in federal court in San Francisco asking a judge to dismiss a trade-secret lawsuit brought by Elon Musk's xAI. The filing rejects allegations that OpenAI induced employees to breach confidentiality and take Grok-related secrets.
In its response to xAI's complaint, OpenAI's lawyers said former xAI employees have the right to change employers and that the company does not need xAI's trade secrets to pursue its work. The filing described the lawsuit as an attempt to intimidate former employees.
xAI filed the complaint last week, accusing OpenAI of a coordinated campaign to recruit staff with knowledge of Grok's source code, data center operations and business plans. The suit names two former engineers and refers to an unnamed senior finance executive and says at least eight employees were hired by OpenAI.
The company alleges one former engineer, identified in filings as Xuechen Li, copied confidential data before joining OpenAI and later sold roughly $7 million worth of xAI stock. A judge issued a temporary restraining order restricting Li from discussing or working on generative AI at OpenAI while the dispute continues.
The case is among several legal actions involving Musk and OpenAI. xAI has sued Apple alleging collusion with OpenAI, Musk has sued OpenAI over its conversion to a for-profit structure, and OpenAI has filed a countersuit accusing Musk of harassment. The parties are scheduled to return to court in early October to consider whether to extend the temporary restrictions on the former engineer.
The company alleges one former engineer, identified in filings as Xuechen Li, copied confidential data before joining OpenAI and later sold roughly $7 million worth of xAI stock. A judge issued a temporary restraining order restricting Li from discussing or working on generative AI at OpenAI while the dispute continues.
The case is among several legal actions involving Musk and OpenAI. xAI has sued Apple alleging collusion with OpenAI, Musk has sued OpenAI over its conversion to a for-profit structure, and OpenAI has filed a countersuit accusing Musk of harassment. The parties are scheduled to return to court in early October to consider whether to extend the temporary restrictions on the former engineer.
