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Elon Musk's xAI Sues OpenAI Again, This Time Over Alleged Trade Secret Theft

Elon Musk’s xAI has filed a federal lawsuit against OpenAI, alleging a systematic campaign to steal proprietary technology through the poaching of former employees. The lawsuit claims that OpenAI induced ex-xAI engineers to misappropriate critical information, including the company’s entire source code and data center strategies. Key incidents include an engineer allegedly uploading the entire xAI source code to a personal cloud account and admitting to the theft in a handwritten confession. The complaint details how an OpenAI recruiter offered multi-million dollar salaries to xAI employees, leading to several instances of code theft shortly after recruitment communications. The lawsuit seeks damages and injunctions, aiming to compel OpenAI to eliminate xAI materials from its systems. This legal action adds to Musk's ongoing disputes with OpenAI and highlights the competitive tensions within the AI sector.

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