xAI Corp., the artificial intelligence company founded by billionaire entrepreneur Elon Musk, has filed a lawsuit against a former employee, accusing him of stealing confidential information and trade secrets related to its AI chatbot, Grok, shortly after his resignation and subsequent move to OpenAI, Azernews reports.
The legal complaint, filed Thursday in the U.S. District Court for the Northern District of California, targets Xuenchen Li for breach of contract, misappropriation of trade secrets, and violation of California's Computer Data Access and Fraud Act.
The lawsuit claims that Li uploaded xAI’s confidential information to his personal system just days before resigning, falsely stated that he had deleted all copies upon leaving, and later refused to return or delete the sensitive data, as required by his contract.
