OpenAI has asked a federal judge to dismiss a lawsuit brought by Elon Musk’s artificial intelligence firm xAI, which claims the company lured away employees to steal trade secrets. In a filing on Thursday, OpenAI described the case as part of Musk’s “ongoing harassment” and dismissed the allegations as “false and unsubstantiated.”
“Under Musk’s leadership, talented xAI employees are leaving in droves, and some are coming to OpenAI to help advance OpenAI’s mission,” the filing stated, as cited by Reuters. “Those employees have every right to go where they choose, and OpenAI has the right to hire them.”
xAI’s Claims Over Grok And Talent Poaching
The lawsuit, filed last week in federal court in San Francisco, alleged OpenAI engaged in a “deeply troubling pattern” of hiring xAI staff in order to gain access to trade secrets related to Grok, its AI chatbot. According to xAI, Grok is more advanced than OpenAI’s ChatGPT.
The claims come as Silicon Valley faces an intensifying race for artificial intelligence talent and market share.
Wider Legal Battle Between Musk and OpenAI
The trade-secret case forms part of a broader legal confrontation between Musk and OpenAI, which he co-founded with current CEO Sam Altman. Musk has also sued OpenAI over its conversion into a for-profit company, while OpenAI has launched a countersuit accusing Musk of harassment.
Additionally, Sam Altman has previously opened up about his complex relationship with Elon Musk, while speaking at an interview with Tucker Carlson.
Altman described Musk as an “incredible hero” and “a great jewel for humanity,” while also admitting the fact that their professional relationship had declined over-time as the Tesla CEO had first helped him start OpenAI but eventually filed several lawsuits during the launch of xAI, as a direct competitor.
Further, Musk has also suggested changing OpenAI’s name to “ClosedAI,” adding fuel to this fire.
Separately, xAI has sued Apple, alleging it conspired with OpenAI to suppress rival platforms. Both Apple and OpenAI denied the claims earlier this week and have sought dismissal.
In Thursday’s filing, OpenAI characterised xAI’s lawsuit as an intimidation tactic designed to divert attention from internal challenges. According to OpenAI, the truth is that xAI is “hemorrhaging talent” to other competitors, the firm added.
