Elon Musk’s xAI has filed a lawsuit against OpenAI, accusing the company of orchestrating unethical employee poaching to acquire proprietary technology. The lawsuit claims OpenAI recruiters targeted former xAI employees, leading to allegations of source code theft and the transfer of confidential data. High-profile incidents involve former engineers like Xuechen Li, who confessed to stealing code, and Jimmy Fraiture, who allegedly used AirDrop to share sensitive files. Legal experts suggest the case hinges on defining xAI’s ‘secret sauce,’ which encompasses GPU racking, vendor contracts, and operational playbooks. The outcome may depend on whether OpenAI intentionally directed its recruitment efforts. OpenAI may defend itself by demonstrating independent development with verifiable records. xAI is pursuing damages and injunctions against OpenAI, demanding the return of its materials and the destruction of related models. This lawsuit adds to Musk’s ongoing legal battles with OpenAI, following a recent antitrust dispute with Apple.
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