Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
TSMC offers solution as Musk’s xAI sues new OpenAI engineer over trade secret theft

TSMC offers solution as Musk’s xAI sues new OpenAI engineer over trade secret theft

CryptopolitanCryptopolitan2025/08/30 03:40
By:By Hannah Collymore

Share link:In this post: Musk’s xAI sued ex-engineer Xuechen Li for allegedly stealing xAI secrets and joining OpenAI. xAI seeks damages and a restraining order, though OpenAI itself is not named as a defendant. TSMC launched a global trade secrets registry system to help companies like xAI systematically protect IP.

Elon Musk’s artificial intelligence startup xAI has launched a lawsuit against a former engineer accused of stealing proprietary information to take to rival OpenAI. 

The lawsuit came just as Taiwan Semiconductor Manufacturing Company (TSMC) unveiled a global system designed to help companies better manage and protect their intellectual property.

Musk’s xAI in legal battle with ex-engineer

Musk’s xAI filed its complain t on Thursday, August 28, in a California federal court, alleging that former employee Xuechen Li stole confidential material tied to Grok, the company’s conversational AI chatbot, and carried it to his new role at OpenAI earlier this month.

According to the filing, Li helped train and develop Grok during his tenure at xAI, which began last year. The company alleges he downloaded and concealed files shortly after accepting a job offer from OpenAI and selling $7 million of his xAI stock in July.

The lawsuit claims Li admitted to theft during a meeting on August 14, but investigators later discovered additional sensitive material on his devices. xAI is seeking monetary damages and a restraining order preventing Li from working for OpenAI.

It’s important to note that OpenAI itself is not a defendant in the case.

Musk, who co-founded OpenAI in 2015 before leaving its board three years later, has become one of the company’s fiercest critics. He is currently pursuing separate lawsuits against OpenAI and chief executive Sam Altman for allegedly abandoning its initial non-profit mission, and earlier this week filed an antitrust case against OpenAI and Apple in Texas over alleged monopolization of AI chatbots on Apple devices.

See also Firms queue for government underwater defense spending after multibillion-dollar aerial tech boost

TSMC promotes trade secrets registry

While Musk’s startup opted for litigation, TSMC, the world’s largest contract chipmaker, took a more systematic approach to trade secret protection. The Taiwanese company said it would begin marketing its proprietary registry system to partners in Europe and the US.

The system, in development since 2013, functions as a secure database of confidential information, ranging from chip designs to manufacturing processes. To date, 20 local firms including ASE Technology Holding have adopted the platform.

TSMC associate general counsel Fortune Shieh said that the registry integrates with HR and IT systems and uses artificial intelligence to track projects, joint ventures and standout talent. The database now contains more than 610,000 entries.

“If our suppliers also adopt this trade secret registration and management system… it can help them build a stronger innovation culture and more systematic management… and in turn, we benefit from that as well,” Shieh said.

The company mentioned that cybersecurity had been “a fundamental and necessary consideration” from the outset, with automatic encryption designed to render files unreadable even if hacked.

Rising risks for global innovators

Despite such precautions and systems in place, TSMC has itself faced theft incidents . Earlier this week, Taiwanese prosecutors indicted three individuals accused of stealing its trade secrets to benefit Japan’s Tokyo Electron. The company has vowed a “zero-tolerance” policy and increased internal monitoring following recent breaches.

See also AI can now be hacked with a simple 'typo' in its memory

While xAI seeks legal redress for alleged misconduct by an individual employee, TSMC is institutionalizing and about to commercialize a framework aimed at preventing such disputes.

The potential for leaks or divulging of intellectual property has long been a major headache for businesses, and in recent times, that risk has been elevated in the AI and semiconductor space as firms compete for scarce experts and breakthroughs. This gives insiders access to commercially critical data which can be difficult to manage.

Litigation may be necessary to punish violations, but systems that catalogue and protect intellectual assets could prove more effective in deterring breaches and making sure of lasting innovation.

KEY Difference Wire helps crypto brands break through and dominate headlines fast

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Federal Reserve Chair frontrunner Waller: Ethereum and stablecoins are the next step in payment development, institutions should adopt them

Waller, a leading candidate for the next Federal Reserve Chair, has openly expressed optimism towards digital assets, especially Ethereum and stablecoins, urging financial institutions to embrace cryptocurrencies as the natural next step in the evolution of payments.

深潮2025/08/30 17:27

Behavioral Economics and the Reflection Effect: How Investor Psychology Shapes FBTC's Volatility and Opportunity

- Fidelity's FBTC Bitcoin ETP reflects the reflection effect, where investors shift risk preferences between gains and losses, amplifying volatility in 2025. - Events like the 2025 Bybit breach triggered panic selling of FBTC by retail investors, while institutions capitalized on discounted prices during dips. - Contrarian strategies thrive by exploiting emotional overreactions: buying during panic-driven selloffs and rebalancing to hedge against sentiment-driven volatility. - FBTC's regulated structure an

ainvest2025/08/30 17:21
Behavioral Economics and the Reflection Effect: How Investor Psychology Shapes FBTC's Volatility and Opportunity

How Bit Digital (BTBT) is Pioneering AI-Driven Branding in B2B Fintech Marketing

- Bit Digital (BTBT) rebranded as AI infrastructure leader via WhiteFiber, targeting finance/healthcare sectors with GPU cloud solutions. - WhiteFiber reported $14.8M Q1 2025 revenue with $1.4M net income from clients like Cerebras and Montreal data center expansion. - SOC 2/ISO 27001-certified infrastructure and NVIDIA GPU integration address enterprise needs for secure, compliant AI computing. - Analysts project 28.7% annual growth for WhiteFiber, with BTBT shares having 46.3% upside potential based on $

ainvest2025/08/30 17:21
How Bit Digital (BTBT) is Pioneering AI-Driven Branding in B2B Fintech Marketing

Ethereum News Today: Ethereum Layer 2 Meme Coin Gains Steam as Shiba Inu's Potential Heir

- Little Pepe (LILPEPE), an Ethereum Layer 2 meme coin, aims to surpass Shiba Inu by offering fast, secure transactions and zero taxes. - Its $22.325M presale (14.25B tokens sold) and ChatGPT query dominance signal strong community traction similar to 2023's PEPE surge. - A 95.49% CertiK audit score and $777K reward program reinforce trust, with analysts projecting $1 price targets and $300M market cap potential. - The project's infrastructure innovations and balanced tokenomics position it as a sustainabl

ainvest2025/08/30 17:18
Ethereum News Today: Ethereum Layer 2 Meme Coin Gains Steam as Shiba Inu's Potential Heir