X.AI Escalates OpenAI Fight With New Trade Secrets Lawsuit (2)

Sept. 25, 2025, 12:34 PM UTCUpdated: Sept. 25, 2025, 4:41 PM UTC

Elon Musk‘s X.AI Corp. accused OpenAI Inc. of misappropriating its trade secrets by recruiting and hiring multiple employees and directing or encouraging them to steal confidential information including its source code.

OpenAI hired at least eight X.AI employees in a “hiring spree” designed to gain access to proprietary information, X.AI said in the complaint filed Wednesday in the US District Court for the Northern District of California. OpenAI targeted engineers Xuechen Li and Jimmy Fraiture because of their access to X.AI’s innovative code and enticed them with significant compensation to steal the code when they left X.AI, the complaint ...

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