On August 29, 2025, xAI, a company founded by Elon Musk, initiated legal proceedings in a California federal court against its former engineer, Xuechen Li. The lawsuit alleges that Li stole the core technical secrets of xAI's open-source chatbot Grok upon joining OpenAI. Prior to his departure for OpenAI, Li reportedly sold approximately $7 million worth of xAI stock in July. Subsequently, xAI discovered undeclared sensitive materials on its devices. This incident underscores the intense competition for AI talent within the technology industry and the rivalry that exists between companies.