Elon Musk is going after a former engineer for allegedly leaking confidential information about Grok AI. Musk’s artificial intelligence startup xAI has filed a lawsuit against a former engineer, accusing him of stealing confidential information about its Grok chatbot before moving to rival OpenAI.
Grok AI is Musk’s next-generation artificial intelligence assistant, deeply integrated into X (formerly Twitter) and Tesla’s ecosystem. Announced in 2023, Grok is designed to offer advanced conversational abilities, blending Musk’s vision of AI with social media and real-world applications.
On X, Grok acts as a powerful chatbot that can engage users with personalized, context-aware responses, helping with everything from casual conversation to complex information queries. Unlike generic AI, Grok aims to leverage Musk’s innovative tech approach by combining large language model (LLM) capabilities with real-time data and user insights from X. It reflects Musk’s broader ambition to build AI that is more accessible, trustworthy, and useful across multiple platforms including social media, electric vehicles, and beyond.
Grok AI represents a key part of Musk’s strategy to redefine AI’s role in communication, productivity, and daily life by embedding it within the tools millions use every day.
The case, lodged in a California federal court, centers on Xuechen Li, who joined xAI in early 2023 as part of a 20-member technical team responsible for training and developing Grok’s AI models. According to the complaint, Li sold $7 million worth of company stock earlier this year before resigning in July. He was due to start at OpenAI in August.
Musk is no stranger to lawsuits against OpenAI and Sam Altman. Musk’s lawsuits against OpenAI and CEO Altman center on allegations that OpenAI has strayed from its original nonprofit mission. Musk, who co-founded OpenAI, claims the organization shifted to a for-profit model heavily influenced by its $13 billion investment partner, Microsoft. He argues this shift has led to closed-source AI development focused on maximizing corporate profits rather than serving the public good. Musk accuses OpenAI and Altman of breaching founding agreements by prioritizing commercial interests over transparency and ethical AI innovation, sparking a high-profile legal battle.
In a separate case, Musk’s AI company, xAI, has filed an antitrust lawsuit against OpenAI and Apple. This suit alleges the two companies are monopolizing the AI chatbot and smartphone markets by integrating OpenAI’s technology into Apple’s ecosystem, creating unfair barriers for competitors like xAI’s Grok chatbot. These lawsuits have attracted attention from regulators, including the U.S. Securities and Exchange Commission (SEC), investigating potential investor deception related to OpenAI’s corporate restructuring. The outcome could reshape AI industry competition, governance, and the future direction of advanced AI development, highlighting tensions between innovation, regulation, and market control.
READ: Elon Musk files motion to dismiss SEC lawsuit (
This latest lawsuit could very well be the one that gives Musk the upper hand over OpenAI and Altman. xAI alleges that before his departure, Li copied “confidential information and trade secrets” from his company laptop onto a personal storage device. The filing claims Li took steps to conceal his actions by deleting browser history and system logs, renaming and compressing files, and attempting to “cover his tracks.” The startup says Li admitted to taking documents during a meeting on Aug. 14, although further material was later discovered on his devices.
This lawsuit marks a critical escalation in Musk’s ongoing battle with OpenAI, potentially tipping the scales in his favor. If xAI proves that confidential information about Grok AI was stolen and transferred to OpenAI, it could undermine OpenAI’s competitive position and expose serious legal and ethical breaches.
The company argues the data relates to “cutting-edge AI technologies with features superior to those offered by ChatGPT and other competing products,” and that the material could give OpenAI a “potential overwhelming edge in the race to dominate the AI landscape.” xAI is seeking monetary damages as well as a restraining order to block Li from taking up his new role at OpenAI.