OpenAI Moves to Toss xAI Trade Secrets Suit
The legal tangle is less about who hired whom and more about whether any real secrets actually changed hands in a market built on talent mobility.
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ChatGPT-owner OpenAI has asked a US judge to dismiss Elon Musk’s xAI lawsuit that accuses the company of stealing trade secrets by hiring former xAI staff, calling the case “groundless” and part of Musk’s “ongoing harassment.”
The filing in the Northern District of California argues xAI has not alleged that OpenAI acquired or used any xAI secrets.
In a separate answer filed the same day, OpenAI said it “does not need or want anyone’s, much less xAI’s, trade secrets,” adding the case is designed “to generate publicity” and “bully and threaten” employees who left xAI for other companies. “OpenAI strongly rejects these tactics.”
xAI sued on 25 September, alleging OpenAI engaged in a “deeply troubling pattern” of hiring to access Grok-related secrets and other confidential plans.
Reuters reported the complaint names former engineer Jimmy Fraiture and references other ex-employees. OpenAI’s motion said xAI does not plausibly allege any transfer or use of trade secrets at OpenAI.
OpenAI also pointed to broader context, telling the court that “xAI is hemorrhaging talent to other competitors, including OpenAI,” and that workers “have every right to go where they choose.”
The filings arrive amid overlapping litigation among Musk, xAI, OpenAI and Apple.
Earlier this week Apple and OpenAI asked a judge to dismiss xAI’s separate antitrust suit over ChatGPT’s integration into Apple devices. Meanwhile, Musk’s 2024 California suit against OpenAI over its corporate structure was withdrawn last year.
