Just weeks after filing suit against a former engineer, xAI has escalated the dispute by suing OpenAI directly. In a complaint filed on September 24, 2025 in the Northern District of California, xAI accuses OpenAI of orchestrating a deliberate campaign to misappropriate xAI’s trade secrets, interfere with its economic relationships, and gain an unfair edge […]| Beck Reed Riden LLP
The pace of trade secret litigation in the AI industry shows no sign of slowing. On September 15, 2025, Doximity and two of its executives moved to dismiss OpenEvidence’s lawsuit in the District of Massachusetts, which alleged misappropriation of trade secrets and related claims. Doximity’s motion offers a window into how courts may evaluate trade secret claims in the AI context, especially when the “secret” at issue is a system prompt or another feature of an AI model.| Beck Reed Riden LLP
On August 28, 2025, xAI (formerly known as Twitter) filed suit in the Northern District of California against a former employee, alleging willful misappropriation of its most sensitive trade secrets, breach of contract, fraud, and violations of California’s computer access statutes. X.AI Corp. et al v. Xuechen Li, Case No. 3:25-cv-07292 (N.D. Cal. Aug. 28, 2025). The allegations are nothing short of explosive.| Beck Reed Riden LLP
Artificial intelligence is no longer just a tool. Increasingly, AI is generating valuable information that companies want to protect as trade secrets. From drug discovery to chip design, AI systems are producing intellectual property that once required substantial human effort and resources. At the same time, AI’s ability to process massive datasets means that certain categories of trade secrets may not remain protectable at all.| Beck Reed Riden LLP
As OpenAI launches ChatGPT 5, much of the focus is on its speed, accuracy, and ability to handle more complex work than ever before. But as with any leap in AI capability, the legal risks are also about to accelerate.| Beck Reed Riden LLP
On December 9, 2024, Russell Beck and Sarah Tishler will be speaking at the New York City Bar Association’s Trade Secrets Symposium.| Beck Reed Riden LLP
