The legal battle over AI talent has intensified, with xAI suing former employee Xuechen Li for allegedly stealing trade secrets before moving to rival OpenAI. Filed in federal court, the lawsuit claims Li misappropriated proprietary AI technologies while liquidating $2.2 million in xAI shares. The allegations detail that Li copied confidential documents onto a personal system the same day he accessed $7 million in cash. xAI states these technologies could save competitors billions in R&D. Li reportedly destroyed evidence of his actions, including deleting browser history and renaming files. A Stanford-educated engineer involved in developing AI models at xAI, Li resigned shortly after the alleged theft, later signing documents asserting he had returned company property and would maintain confidentiality. This controversy highlights the fierce competition amongst major tech firms, including Meta, Microsoft, Google, and OpenAI, in securing top-tier AI talent amid multi-million dollar recruitment offers.
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