Elon Musk’s AI startup xAI has filed a new lawsuit against OpenAI, accusing the company of stealing trade secrets and orchestrating a targeted campaign to recruit former xAI employees. The lawsuit, filed in the US District Court for the Northern District of California, claims OpenAI has engaged in a "deeply troubling pattern" of hiring individuals with access to sensitive information about xAI’s technologies and business strategies. The complaint alleges that OpenAI is not simply recruiting competitors’ staff but is running a coordinated and unlawful effort to gain access to confidential data related to Grok, xAI’s flagship chatbot. According to xAI’s legal team, OpenAI has actively encouraged these hires to breach their confidentiality agreements with the company. The lawsuit specifically names Xuechen Li, a former xAI engineer, who is already facing a separate legal case filed by xAI in August over allegations of trade secret theft. In September, xAI secured a temporary court order preventing Li from working on or discussing AI technology with OpenAI. However, a source familiar with the matter told Business Insider that Li never actually worked at OpenAI. The filing also cites the hiring of Jimmy Fraiture, an early xAI engineer, and a senior finance executive, suggesting OpenAI targeted them to gain insider knowledge. Fraiture is not named as a defendant in the lawsuit. OpenAI has denied the allegations, calling the lawsuit part of what it describes as Musk’s ongoing pattern of harassment. In a statement to Business Insider, the company said, “This new lawsuit is the latest chapter in Mr. Musk's ongoing harassment. We have no tolerance for any breaches of confidentiality, nor any interest in trade secrets from other labs.” The legal battle is part of a broader and escalating conflict between Musk and OpenAI. The two entities have been at odds since Musk’s departure from the company’s board in 2018. xAI has also sued Apple in August, alleging the tech giant conspired with OpenAI to suppress competition. Meanwhile, OpenAI has countersued Musk, accusing him of harassment. The case underscores the intense competition in the AI industry and the high stakes involved in protecting intellectual property and talent. xAI’s attorneys have not yet responded to requests for comment, and Musk has not addressed the lawsuit publicly.