Elon Musk’s xAI accuses former engineer Xuechen Li of alleged theft of AI trade secrets

September 1, 2025

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Elon Musk’s artificial intelligence venture, xAI, has launched legal action against a former employee accused of stealing sensitive information about its Grok chatbot and passing it to rival OpenAI.

Details of the lawsuit

The lawsuit, filed on Thursday in a California federal court, claims that engineer Xuechen Li misappropriated confidential data on “cutting-edge AI technologies with features surpassing class=”backlink” target=”_blank” href=”https://www.livemint.com/technology/tech-news/setback-for-elon-musk-co-founder-igor-babuschkin-exits-xai-to-launch-new-ai-safety-venture-11755161692344.html” data-vars-page-type=”story” data-vars-link-type=”Manual” data-vars-anchor-text=”ChatGPT”>ChatGPT” before joining OpenAI earlier this month.

Li’s role at xAI

According to the complaint, Li joined xAI last year and played a key role in…

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