OpenAI asks court to dismiss trade-secret lawsuit from Elon Musk’s xAI

On Thursday, OpenAI urged a federal judge to dismiss a lawsuit claiming it poached employees from Elon Musk’s AI startup xAI to steal trade secrets, labeling the case part of Musk’s “ongoing harassment” of the company.
Blake Brittain for Reuters:
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xAI’s lawsuit, filed last week in federal court in San Francisco, alleged that OpenAI engaged in a “deeply troubling pattern” of hiring away former xAI employees to gain access to trade secrets related to its AI chatbot Grok, which it said was more advanced than OpenAI’s ChatGPT.
The lawsuit is part of a broader legal battle between Musk and OpenAI, which he co-founded alongside OpenAI CEO Sam Altman, amid a high-stakes race in Silicon Valley for talent and to gain market share in the burgeoning AI industry.
xAI has separately sued Apple for allegedly conspiring with OpenAI to suppress rival platforms. Apple and OpenAI denied the allegations and asked the court to dismiss that case on Tuesday.

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MacDailyNews Note: Musk is independently pursuing a lawsuit against OpenAI and its CEO, Sam Altman, in a California federal court, aiming to block OpenAI’s transition from a nonprofit to a for-profit entity. Musk co-founded OpenAI with Altman in 2015 as a nonprofit.

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