OpenAI has responded to a lawsuit filed by Elon Musk’s AI startup, xAI, calling the accusation of stealing technology “baseless” and a distraction from Musk’s own company struggles. The lawsuit, filed last week in a San Francisco federal court, claims OpenAI hired several xAI employees to gain access to trade secrets.
OpenAI’s legal team pushed back strongly, saying their company has no need or interest in taking xAI’s proprietary information. They described the lawsuit as a move by Musk to draw attention away from xAI’s lack of innovation, accusing xAI of trying to intimidate employees who chose to leave and work elsewhere in AI.
This legal clash adds another chapter to the ongoing feud between Elon Musk and Sam Altman, who co-founded OpenAI together about ten years ago but have been at odds through various disputes since last year.
xAI’s complaint centers on the hiring of at least eight employees from Musk’s team, alleging this was part of a plan to steal valuable intellectual property. OpenAI, on the other hand, asked the court to dismiss the case outright, calling it a publicity stunt rather than a legitimate claim.
So far, xAI representatives have not commented on the situation. The case is officially known as X.AI Corp. v. OpenAI Inc., and it’s being heard in the Northern District of California.
This fight highlights the competitive and sometimes tense environment in the AI industry, where top talents often move between companies and legal battles can quickly follow.