New Delhi, October 3: Elon Musk’s AI company, xAI, has recently taken legal action against OpenAI. It has been alleged that the Sam Altman-run firm is involved in stealing trade secrets. OpenAI has moved to dismiss a lawsuit filed by Elon Musk’s xAI. The case was submitted in a San Francisco federal court, where xAI alleged that OpenAI has targeted its staff to gain access to sensitive details linked to its chatbot Grok. OpenAI is reportedly seeking to dismiss a lawsuit from Elon Musk's xAI.

The legal battle highlights growing tensions between OpenAI and Musk’s xAI, as two companies are competing to shape the future of artificial intelligence (AI). As per reports, OpenAI has recently finalised a significant deal that enables its employees to sell their shares at a valuation of USD 500 billion. The milestone places the ChatGPT creator ahead of Elon Musk’s SpaceX, securing its position as the world’s most valuable startup. Can Perplexity Comet Browser Be Downloaded on Mobile Devices in India? Check Features and Details on Availability for iPhone and Android Users.

Why Elon Musk-Run xAI Filed a Lawsuit Against OpenAI?

As per a report of Times Now, xAI filed a lawsuit in the federal court of San Francisco last week. The complaint alleges that OpenAI has been following questionable practices by hiring former xAI employees to obtain trade secrets connected to AI chatbot Grok. The company claimed that Grok is more efficient and also more powerful compared to OpenAI's ChatGPT.

OpenAI Response to Elon Musk-Run xAI Lawsuit

OpenAI said it will defend its employees against Elon Musk’s lawsuit, rejecting the claims as "harassment" and stressed that it has no interest in anyone’s trade secrets. In a post on X (formerly Twitter) on October 3, OpenAI said, “Today we responded to Elon’s latest harassment tactic dressed up as a lawsuit. OpenAI Valuation Hits USD 500 Billion After Share Sale, Surpasses Elon Musk SpaceX To Become World’s Largest Startup.

OpenAI Responds to Elon Musk's Lawsuit

OpenAI doesn’t need or want anyone’s trade secrets. We will protect our employees and won’t be intimidated by his attempts to bully them.” As per reports, Sam Altman-run firm reportedly said, "he truth is that xAI is hemorrhaging talent to other competitors, including OpenAI."

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TruLY Score 3 – Believable; Needs Further Research | On a Trust Scale of 0-5 this article has scored 3 on LatestLY, this article appears believable but may need additional verification. It is based on reporting from news websites or verified journalists (Times Now), but lacks supporting official confirmation. Readers are advised to treat the information as credible but continue to follow up for updates or confirmations

(The above story first appeared on LatestLY on Oct 03, 2025 02:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).