Elon Musk Accuses ChatGPT Owner OpenAI Of Stealing AI Secrets: ‘Deeply Troubling Pattern’
Elon Musk’s AI company, xAI, has filed a lawsuit accusing OpenAI of illicitly acquiring trade secrets to gain an edge in AI development.
Elon Musk’s artificial intelligence startup xAI has filed a lawsuit against rival OpenAI in a California federal court, alleging ChatGPT maker stole trade secrets to secure an unfair advantage in the AI race. This marks the latest escalation in Musk’s ongoing legal conflict with his former business partner, Sam Altman.
The lawsuit, filed on Sept. 24, claims that OpenAI has engaged in a “deeply troubling pattern” of hiring former xAI employees to gain access to confidential information about Grok, xAI’s AI chatbot. According to xAI, the company is facing unfair competition as OpenAI allegedly seeks to use trade secrets for technological gain.
“OpenAI is targeting those individuals with knowledge of xAI’s key technologies and business plans, including xAI’s source code and its operational advantages in launching data centres, then inducing those employees to breach their confidentiality and other obligations to xAI through unlawful means,” the lawsuit states, as reported by The Guardian.
An OpenAI spokesperson told Reuters on Sept. 25 that the allegations are unfounded and described the lawsuit as “the latest chapter in Mr Musk’s ongoing harassment” of the company.
Details Of The Alleged Breach
xAI’s complaint stated that the company discovered the alleged campaign while investigating claims of trade secret theft against former engineer Xuechen Li, who is separately accused of taking confidential information to OpenAI.
According to The Guardian, the complaint also names former xAI engineer Jimmy Fraiture and an unnamed senior finance executive as people allegedly hired by OpenAI to access trade secrets.
The lawsuit includes a screenshot of an email sent in July 2025 by xAI’s lawyer, Alex Spir, to a former employee, accusing them of violating confidentiality agreements. The employee reportedly responded with a single-line expletive.
xAI Sues Apple As Well
As per Reuters, xAI has also filed a lawsuit against Apple, accusing the tech giant of conspiring with OpenAI to suppress competing platforms. Apple has not yet commented on the case.
Musk is pursuing additional legal action against OpenAI over its conversion to a for-profit entity, while OpenAI has countersued Musk for harassment.
Ongoing Legal Feud
Musk and xAI have repeatedly clashed with OpenAI through multiple lawsuits over the years, reported The Guardian.
The relationship between Musk and Altman has grown increasingly hostile as OpenAI’s influence in the tech sector has expanded, including Musk’s attempts to block OpenAI’s for-profit conversion plans.
