cd /news/artificial-intelligence/openais-feud-with-xai-carries-on-as-… · home topics artificial-intelligence article
[ARTICLE · art-59222] src=mercurynews.com ↗ pub= topic=artificial-intelligence verified=true sentiment=↓ negative

OpenAI’s feud With xAI carries on as Apple secrets fight revs up

OpenAI asked a judge to sanction xAI for filing a trade secret lawsuit that 'should never have been filed,' seeking over $1 million in legal fees. The feud continues as Apple filed a separate suit accusing OpenAI of stealing trade secrets related to upcoming products. OpenAI denies the allegations and says it has no interest in other companies' trade secrets.

read2 min views1 publishedJul 14, 2026
OpenAI’s feud With xAI carries on as Apple secrets fight revs up
Image: Mercurynews (auto-discovered)

Getting your

Trinity Audioplayer ready...By Peter Blumberg, Bloomberg

Sam Altman’s artificial intelligence startup filed its request Monday, hours after the maker of the Grok chatbot gave notice that it intends to appeal its repeatedly dismissed claims that OpenAI poached employees and encouraged them to steal confidential information.

RELATED: Apple files lawsuit accusing ChatGPT maker OpenAI of stealing trade secrets

Monday’s developments will likely keep OpenAI’s feud with xAI alive for months to come even as a blockbuster suit filed Friday by Apple Inc. leveling similar accusations against OpenAI is just getting under way. OpenAI is poised for an initial public offering in the coming months

“xAI sued OpenAI first and looked for evidence later, forcing OpenAI to spend substantial resources defeating a sprawling, aggressively litigated trade secret claim for which xAI had no evidentiary support,” OpenAI’s lawyers wrote.

A lawyer for xAI didn’t immediately respond to a request for comment.

A San Francisco federal judge initially dismissed xAI’s suit in February, saying the company failed to demonstrate any misconduct by OpenAI and instead merely pointed to eight former xAI employees who left for OpenAI at around the same time.

xAI filed an amended complaint in March after an unsuccessful bid for a six-month extension to bolster its claims. In June, US District Judge Rita Lin again threw out the suit. She said the new allegations — including claims about OpenAI asking a new hire to talk about past work — attempted to paint “routine” parts of the hiring process as nefarious efforts to induce trade secrets theft.

In its suit, the iPhone maker alleges that OpenAI encouraged Apple employees to share information, components, drawings and other materials related to upcoming products — part of efforts by the AI company to develop its own suite of devices.

Apple is seeking monetary damages and an order requiring OpenAI to halt the alleged conduct and destroy any proprietary materials. Legal remedies could take months or years to materialize.

In response to Apple’s complaint, OpenAI said it has “no interest in other companies’ trade secrets” and would “remain focused on building innovative technology.”

The xAI case is X.AI Corp. v. OpenAI Inc., 3:25-cv-08133, US District Court, Northern District of California (San Francisco).

–With assistance from Rachel Metz, Mark Gurman and Annelise Levy.

More stories like this are available on bloomberg.com ©2026 Bloomberg L.P.

── more in #artificial-intelligence 4 stories · sorted by recency
── more on @openai 3 stories trending now
sponsored brought to you by zahid.host 4,200+ EU-deployed projects
reading about agents? ship yours in a single git push.

Run your AI side-project on zahid.host

EU-based hosting, git-push deploys, automatic HTTPS, no cold starts. Free tier with a custom domain — perfect for shipping the agent you just read about.

$git push zahid main
Live at https://your-agent.zahid.host
Get free account → Pricing
from €0/mo · no card required
LIVE [news/openais-feud-with-xa…] indexed:0 read:2min 2026-07-14 ·