- OpenAI has asked a U.S. judge to dismiss a lawsuit from Elon Musk‘s xAI, calling the claims baseless.
- xAI accuses OpenAI of hiring former xAI employees to gain confidential information about its AI product, Grok.
- OpenAI denies any wrongdoing and states that employees left xAI by choice.
- The legal dispute is the latest development in a broader conflict between Musk and OpenAI.
- Both companies dispute allegations over trade secrets and employee movement in the AI industry.
OpenAI has filed a request in San Francisco federal court to dismiss a lawsuit brought by xAI, an Artificial Intelligence company founded by Elon Musk. The filing, submitted on Thursday, describes the lawsuit as unfounded and claims it aims to distract from difficulties faced by Musk’s own firm.
xAI recently sued OpenAI, alleging the company tried to obtain proprietary information about its chatbot, Grok, by recruiting xAI engineers and a senior finance executive. The suit claims that this move was part of a “deeply troubling pattern” to secure confidential information.
In its response to the court, OpenAI stated, “xAI’s lawsuit was clearly designed to generate publicity to bully and threaten those employees who exercised their right to leave and work elsewhere in the AI industry.” OpenAI further argued there was “no tolerance for any breaches of confidentiality, nor any interest in trade secrets from other companies,” rejecting any claims that proprietary data was transferred.
The company pointed out that under California law, employees can switch jobs freely, and attributed departures from xAI to internal dissatisfaction, including concerns over Musk’s management style and company culture. OpenAI commented, “xAI is hemorrhaging talent to other competitors, including OpenAI,” while denying that any former xAI staff brought confidential data with them.
This dispute adds another chapter to the expanding legal and business conflict between Musk and OpenAI. Musk, who helped co-found OpenAI in 2015, has separately filed lawsuits against the company and its CEO, Sam Altman, involving its switch to a for-profit model. OpenAI has also countered with claims of harassment.
Previous Articles:
- Trump Jr. Slams Mainstream Media, Touts Crypto at Token 2049 Event
- Tesla Faces Shareholder Revolt Over Musk’s $1 Trillion Pay Package
- ETHZilla Now 8th-Largest Public ETH Holder After Company Pivot
- MSTR Surges 8% as IRS Exempts Bitcoin Gains From New Tax
- White House Races to Appoint New CFTC Chair as Crypto Rules Loom
