Untangling the xAI-OpenAI Legal War: Trade Secrets and Antitrust
Update: 2025-10-04
Description
Today we provide an overview of the escalating legal conflicts between Elon Musk's entities (xAI and X Corp.) and OpenAI, a company Musk co-founded. The core dispute involves two major lawsuits: one filed by xAI alleging that OpenAI engaged in systematic trade secret theft by unlawfully poaching employees with knowledge of xAI’s Grok chatbot and business plans, and a second antitrust claim by X Corp. against OpenAI and Apple. Furthermore, we cover an earlier lawsuit filed by Musk against OpenAI regarding its pivot from a non-profit mission to a capped for-profit structure, a matter that is slated for a jury trial beginning in March 2026.
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