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OpenAI Seeks Dismissal of xAI’s Trade-Secret Lawsuit, Calls It Part of Musk’s “Ongoing Harassment”

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OpenAI has asked a U.S. federal judge to dismiss a lawsuit filed by Elon Musk’s startup xAI, which accuses the company of poaching employees to steal trade secrets. In a filing submitted Thursday, OpenAI described the case as part of Musk’s “ongoing harassment” campaign against the company he once co-founded.

The San Francisco lawsuit, filed by xAI last week, claims OpenAI engaged in a “deeply troubling pattern” of recruiting former xAI staff to gain access to proprietary information about its AI chatbot Grok, which it alleges is more advanced than ChatGPT.

OpenAI denied all allegations, calling them “false and unsubstantiated.” The company argued that employees are free to change jobs and that OpenAI has the right to hire talent from any competitor. “Under Musk’s leadership, talented xAI employees are leaving in droves, and some are coming to OpenAI to help advance OpenAI’s mission,” the filing stated. “Those employees have every right to go where they choose.”

OpenAI’s filing further accused Musk of using litigation as a distraction from xAI’s internal struggles, saying the startup is “hemorrhaging talent” to other firms. “This case is an attempt to intimidate OpenAI and distract from the failures of [Musk’s] own competitive AI effort,” the company argued.

Neither Musk’s representatives nor xAI’s attorneys immediately responded to requests for comment.

The dispute adds to a growing web of legal battles between Musk and OpenAI. Musk has already sued OpenAI and CEO Sam Altman over the company’s shift from a non-profit to a for-profit structure, while OpenAI has countersued Musk for harassment. Separately, xAI has sued Apple, alleging it conspired with OpenAI to suppress rival AI platforms—claims that both companies have denied and sought to have dismissed.

The escalating conflict underscores the intensifying rivalry within Silicon Valley’s AI race, where talent mobility, corporate secrecy, and massive investments have become flashpoints in the battle to dominate next-generation artificial intelligence.

Von der Leyen Calls for Europe-Wide Push on AI-Powered Cars to Revive Auto Industry

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European Commission President Ursula von der Leyen has urged the European Union to embrace an “AI first” strategy for the automotive sector, calling for a coordinated effort to develop self-driving cars made in Europe. Speaking at Italian Tech Week in Turin, the continent’s automotive capital, she argued that artificial intelligence could rejuvenate Europe’s car industry while enhancing road safety and sustainability.

“Self-driving cars are already a reality in the United States and China. The same should be true here in Europe,” von der Leyen said, emphasizing that “AI first” must also mean “safety first.” Her comments reflect growing concern in Brussels about the competitiveness gap between European automakers and tech-led rivals abroad, particularly in the U.S. and China, where AI-driven mobility is advancing rapidly.

Von der Leyen proposed creating a network of European cities to serve as autonomous vehicle pilot zones, noting that 60 Italian mayors have already expressed interest in joining the initiative. She pledged EU support for vehicles “made in Europe, and made for European streets,” positioning AI innovation as a cornerstone of industrial revival and regional independence.

The announcement comes amid intense pressure on Europe’s automotive sector, which employs millions of workers and faces simultaneous demands to decarbonize and digitize. Von der Leyen argued that AI-driven transport could reduce congestion, connect rural communities, and preserve jobs by enabling a new ecosystem of European-designed mobility technologies.

Also speaking at the event were Amazon founder Jeff Bezos, Ferrari and Stellantis Chairman John Elkann, and other global technology leaders—highlighting the deepening link between Silicon Valley innovation and Europe’s manufacturing transformation.

“The future of cars—and the cars of the future—must be made in Europe,” von der Leyen concluded, framing AI not as a threat but as the engine of Europe’s next industrial renaissance.

ECB Chooses AI Startup Feedzai to Combat Fraud in Upcoming Digital Euro

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The European Central Bank (ECB) has selected Portuguese artificial intelligence firm Feedzai to develop fraud-prevention systems for its planned digital euro, a project intended to strengthen Europe’s financial independence from U.S. payment networks and dollar-backed stablecoins.

The contract—valued at up to €237.3 million ($278.7 million)—was announced Thursday as part of a broader package of agreements advancing the digital euro initiative. Under the four-year deal, which could extend up to 15 years, Feedzai and its subcontractor PwC will create an AI-powered fraud scoring system capable of analyzing transactions for suspicious patterns based on user behavior, history, and interactions.

This technology will assist payment service providers in determining whether to approve or flag digital euro transactions—essentially, transfers between central bank–backed electronic wallets.

The ECB also awarded four additional contracts, ranging from €27.6 million to €220.7 million, to firms including Capgemini, which will support different technological and operational aspects of the digital currency ecosystem. Under these framework agreements, the ECB will only pay contractors once project implementation begins.

While the central bank continues to await legislative approval for the digital euro, officials describe it as a strategic response to Visa and Mastercard’s dominance in European payments and the rising influence of U.S.-linked stablecoins promoted under former President Donald Trump. If approved by mid-2026, the digital euro could be launched as early as 2029.

Feedzai, headquartered in Portugal, already monitors more than $8 trillion in global transactions annually, serving clients such as Novobanco and Wio Bank in Abu Dhabi. On the same day as the ECB announcement, Feedzai disclosed an additional $75 million in funding from Lince Capital, Iberis Capital, and Explorer Investments, signaling strong investor confidence in its role within Europe’s financial digitization push.

The partnership marks a major milestone in the ECB’s effort to balance innovation with financial security, ensuring that the future digital euro remains as safe as cash—but smarter.