Elon Musk’s xAI lawsuit against ex-employee has brought the growing rivalry in the artificial intelligence world back into focus. The company has accused former staff member Xuechen Li of stealing confidential information about its chatbot Grok and sharing it with OpenAI, the firm led by Sam Altman. This case highlights how competition between AI companies is pushing employees to cross ethical lines.
According to the lawsuit filed in a California federal court, Li worked on Grok’s latest models. Just before resigning on July 28, he copied sensitive data from his work laptop to a personal storage device. The company claims Li tried to cover his tracks by deleting his browser history, clearing logs, and renaming files before uploading them.
The filing describes the stolen material as “cutting-edge AI technologies” that could give OpenAI a major advantage over rivals like ChatGPT. Musk’s company is seeking a restraining order to block Li from starting his new job at OpenAI on August 19. It is also demanding financial damages.
The xAI lawsuit against ex-employee adds another chapter to the ongoing feud between Musk and OpenAI. Musk has repeatedly accused the Microsoft-backed company of drifting from its mission and gaining unfair advantages in partnerships and markets.






