Musk's xAI sues engineer for allegedly taking secrets to OpenAI

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Featured on Aug 30, 2025 by Null: Elon Musk's Chinese "elite human capital" dumped $7m of xAI stock before stealing the entire xAI codebase, according to lawsuit filed.

Aug 29 (Reuters) - Elon Musk's artificial intelligence startup xAI has sued a former engineer at the company for allegedly stealing trade secrets related to its Grok chatbot and taking them to rival OpenAI.

Musk's company said in the complaint filed on Thursday in California federal court that Xuechen Li stole confidential information related to "cutting-edge AI technologies with features superior to those offered by ChatGPT" to bring to his new job at OpenAI earlier this month.

Li, representatives of OpenAI and attorneys and spokespersons for xAI did not immediately respond to requests for comment on Friday. OpenAI is not a defendant.

The complaint underscores the rivalry between Musk's company and OpenAI and a fierce battle among tech companies for AI talent.

Musk, an OpenAI co-founder, has separately sued the company and its CEO, Sam Altman, for allegedly deviating from its original mission to benefit humanity. OpenAI countersued Musk in April for harassment.

Musk's xAI filed another lawsuit against OpenAI and Apple (AAPL.O) in Texas on Monday for allegedly monopolizing the market for AI chatbots on Apple devices.

The new lawsuit said Li began working as an engineer for xAI last year, where he helped train and develop Grok. The company said Li took its trade secrets in July, shortly after accepting a job from OpenAI and selling $7 million in xAI stock.

Musk's startup said that the secrets could allow OpenAI to bolster ChatGPT with xAI's "more innovative AI and imaginative features."

The lawsuit said Li admitted to stealing company files and "covering his tracks" during a meeting on August 14, and that the company later found additional stolen material on his devices that he had not disclosed.

Musk's AI company asked the court for an unspecified amount of monetary damages and a restraining order blocking Li's move to OpenAI.
 
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Al Swearengen wouldn't have been caught like this...

Hey Elon: 1000025159.gif
 
Null said:
I would wager close to 90% of all programming is done with AI assistance right now.
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>uses ai to program an ai
absolute retardation, pretty much what happens with all of Musks ventures related to anything technical (see, spaceX).
 
China is known for luring companies in and then pilfering them, just look at what happened with GM or Apple. The fact that Musk didn't see this coming is his own fault as any time you get in bed with the Chinese you're going to lose everything.
 
It's a well established fact and meme that China's entire technological sector is built off stolen secrets. many of said secrets had their designs sabotaged to make them harder to decipher causing constant failures when reproduced.

If ONLY somebody could have warned this guy - world's richest man and tech manufacturer with now broken ties to the president of the United States that the Chinese are basically all spies. and Jeets can only (barely) do things in repetition leading to spaghetti code when they're left in charge.

- coincidentally this is why nobody believes for a second that America lacks "skilled labor" in this industry. Everyone is stealing our tech but "we don't have" the skilled workforce? Nahh nigga, you wanted to pay people pennies to create your AI dystopia and got BTFO by the Chinks.
 
gay porn is the best porn said:
absolute retardation, pretty much what happens with all of Musks ventures related to anything technical (see, spaceX).
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That's not how it works.

Basically you write some code and it predicts the next thing you want to do. It can be very, very, very good at this. It can dump out an entire function based on the name. If you write the name, input parameters, and the output type (like with Rust), that function footprint will result in an entire function that is often written as well as a human could. However, with super popular languages (like JS) it is just so unbelievably well fed with source material it can do anything.

If you already understand the language and can audit the code as it comes out, it is just free productivity. I have always struggled to remember funciton names and paradigms and have had to flip back and forth between documentation my entire life. This shit lets me be like 20x more productive when I get into it.
 
Hahahaha everyone is a moron in this story. I think there are some very nice things about Grok’s outputs that are not present in OpenAI’s models, so this will help OpenAI.

Why did he self snitch?
 
Whiskey said:
Does AI have any applications outside of making, cool wallpaper and poor quality porn yet?
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Cheating through school, scamming old people, bulk generating web articles that generate $0.005 in ad revenue, flooding store pages with shitty books and tshirts, spam applying to american jobs. Very popular in certain cultures
 
Null said:
That's not how it works.

Basically you write some code and it predicts the next thing you want to do. It can be very, very, very good at this. It can dump out an entire function based on the name. If you write the name, input parameters, and the output type (like with Rust), that function footprint will result in an entire function that is often written as well as a human could. However, with super popular languages (like JS) it is just so unbelievably well fed with source material it can do anything.

If you already understand the language and can audit the code as it comes out, it is just free productivity. I have always struggled to remember funciton names and paradigms and have had to flip back and forth between documentation my entire life. This shit lets me be like 20x more productive when I get into it.
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I was wondering about that... realistically ai as it stands seems to me a slightly more refined search engine. I imagine it's near useless if you are trying to do anything novel but it cuts down drastically on routine coding?

I can understand that. A nail gun doesn't do anything a hammer doesnt. Till you have 10,000 nails to drive in on a dozen floors.
 
Honestly, fucking based. Perhaps looking at the CEOs K-binges and AI gooning was what inspired him to jump ship and take anything that might be salvageable. The only better outcome would have been if he ran back to the grorious PRC, beyond Elon's legal reach. The seething would've been immense.
 
RowboatGirlyman said:
Honestly, fucking based. Perhaps looking at the CEOs K-binges and AI gooning was what inspired him to jump ship and take anything that might be salvageable. The only better outcome would have been if he ran back to the grorious PRC, beyond Elon's legal reach. The seething would've been immense.
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i think he did both
give it a week to month for new update spam with gork code.
 
Suburban Bastard said:
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Will you say that one more time, Mr Musk?
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How about setting it to a clip of all his H1B built companies successfully products?

Elon Musk H1B Tesla.gif

Clip 1: Tesla failing the "Wild E Coyote" fake wall test
Clip 2: A Model Y turns into another Tesla when it spots it coming from the other direction.
Clip 3: Self-driving test failed when a Tesla tried to drive over steel pillars
Clip 4: Cybertruck looking like a dumpter
Clip 5: Unbreakable windows breaking during demo (note: unbreakable windows in a vehicle that catches on fire in accidents is a terrible idea as fire fighters later demonstrated.)
Clip 6: Tesla fails a test to detect a pedestrian walking into its path
Clip 7: Tesla randomly catching fire in a garage
 
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