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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.

Telstra Fined $12 Million for Secretly Slowing Internet Speeds of Nearly 9,000 Customers

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Australia’s largest telecommunications company, Telstra, has been ordered to pay A$18 million (about $11.9 million) after a court found it misled thousands of customers by reducing their internet speeds without informing them, the Australian Competition and Consumer Commission (ACCC) announced on Friday.

According to the ACCC, Telstra migrated 8,897 customers from its low-cost brand Belong to a plan with half the original upload speed between October and November 2020, without any notification or consent. This left users unknowingly paying for a downgraded service.

“Telstra’s failure to inform customers that their broadband service had been changed denied them the opportunity to decide whether the changed service was suitable for their needs,” said ACCC Commissioner Anna Brakey. The regulator emphasized that customers deserve transparency and control over the quality of the services they pay for.

Beyond the fine, Telstra has committed to compensating affected customers, offering A$15 credits or refunds for every month they were on the reduced-speed plan. A Telstra spokesperson told Reuters that the company accepted the court’s decision and was finalizing remediation efforts.

The ruling adds to growing regulatory scrutiny of Australia’s telecom sector, particularly after Optus—one of Telstra’s main competitors—suffered two emergency call outages last month, one of which was linked to four deaths.

On the market, Telstra shares fell 0.7% following the announcement, while the broader Australian benchmark index (.AXJO) rose 0.5%.

The case underscores how digital infrastructure providers are increasingly being held accountable for consumer transparency and service integrity, as Australia tightens oversight over its critical communications networks.

Court Denies Musk’s Bid to Dismiss OpenAI Harassment Claims

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A federal judge has rejected Elon Musk’s attempt to dismiss OpenAI’s claims that he conducted a “years-long harassment campaign” against the AI startup he co-founded in 2015. U.S. District Judge Yvonne Gonzalez Rogers ruled that Musk must face allegations that he sought to harm OpenAI through press statements, social media posts, legal claims, and a “sham bid” for the company’s assets.

Musk originally sued OpenAI and CEO Sam Altman over the company’s shift to a for-profit model, claiming it strayed from its mission of developing AI for humanity’s benefit. OpenAI countersued in April, alleging fraudulent business practices under California law. The judge found the countersuit legally sufficient to proceed. A jury trial is scheduled for spring 2026.