TLDR · BIG TECH & STARTUPS

XAI SUES FORMER ENGINEER, ALLEGING HE STOLE TRADE SECRETS AFTER BEING PAID $7M

sfstandard.com4 min read

Summary from the TLDR newsletter

xAI has accused a former employee, Xuechen Li, of taking confidential information and trade secrets before resigning and joining rival OpenAI. It has filed a lawsuit alleging that Li willfully and maliciously copied documents from his work-issued laptop onto at least one personal system the day after being paid a large sum in cash for his xAI shares. Li allegedly took extensive measures to conceal his misconduct, including deleting his browser history and system logs and renaming and compressing files before uploading them to his personal system. Li resigned from xAI on July 28 and was scheduled to start at OpenAI on August 19.