September 4, 2025

Hold tight, AI fans! The war between top Silicon Valley giants just got spicier. On Tuesday, US District Judge Rita Lin in San Francisco delivered a hot shot in favor of Elon Musk's AI startup, xAI. She slapped a temporary restraining order on Xuechen Li, a former xAI engineer, stopping him cold from any involvement or even chatting about AI technology at his new workplace – none other than OpenAI, makers of ChatGPT! Musk’s company accused Li of scooping up priceless trade secrets about "cutting-edge AI technologies with features superior to those offered by ChatGPT". The juicy accusation says Li grabbed these secrets last July after accepting his new job at OpenAI, and even sold $7 million in xAI stock. Imagine that – making money while switching teams! Judge Lin wasn’t playing games. She said Li can’t communicate at all about generative AI with anyone at OpenAI – be it officers, employees, or consultants. This block stays until xAI confirms all its confidential info has vanished from Li's hands. A big hearing is set for October 7 to decide if this ban should stick for longer. Meanwhile, the lawsuit (xAI Corp v. Xuechen Li) shows just how heated the race is to control AI powerhouses and scoop up top talent. But wait, the drama doesn’t end here! Musk’s xAI is also Sue City lately – last month, it dragged Apple to court, accusing the tech giant of teaming up with OpenAI to crush competition. On top of that, Musk himself is suing OpenAI over its switch to a for-profit status, while OpenAI hit back in April with a countersuit accusing Musk of harassment. With so many lawsuits, money moves, and secret-stealing claims, the AI battleground is explosive. Will Musk’s xAI keep cutting ahead, or will OpenAI fight back tougher than ever? Stay tuned as October’s court date approaches and this tech thriller unfolds!

Read More at Economictimes →

Tags: Xai, Openai, Elon musk, Ai trade secrets, Lawsuit, Xuechen li,