xAI Sues Ex-Staff Over AI Secrets

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xAI Sues Ex-Staff Over AI Secrets

Elon Musk’s xAI sues ex-engineer over alleged theft of AI secrets tied to Grok chatbot.

xAI, founded by Elon Musk, has accused former engineer Xuechen Li of stealing trade secrets before joining OpenAI. The case adds fuel to Musk’s ongoing battle with OpenAI over AI leadership and control.

• The lawsuit, filed in California federal court, claims Li downloaded confidential data about xAI’s Grok chatbot.

• Li allegedly admitted to taking files after securing a $7M stock payout and a job offer at OpenAI.

• xAI says the stolen material could give OpenAI an edge over ChatGPT.

This case shows the rising tensions in the AI race, with Musk pushing back hard against rivals. It highlights how competition for top AI talent and technology is intensifying, while legal battles are shaping the future of the industry.
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Top AI Talent Leaves Meta Fast

Meta’s big AI hiring push is now slowing with a freeze and restructuring.

Mark Zuckerberg spent billions building Meta Superintelligence Labs, but after a wave of hires, the company is now pausing hiring and reshaping its AI teams to stay organized and focused.

• Meta bought 49% of Scale AI for $14.3B and hired top researchers, many from OpenAI.

• Some key people left soon after joining, raising questions about retention.

• A hiring freeze is in place while Meta plans its 2026 budget, with focus now on research, products, and infrastructure.

This shows how fierce the AI talent war has become. Even with billions on the table, keeping top talent is hard when values and long-term direction matter more than money. For Meta, this restructuring is a critical step in catching up with leaders like OpenAI, Google, and Anthropic in the race toward superintelligence.
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