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xAI Sues Ex-Engineer For Alleged Theft Of 'Cutting-edge' Trade Secrets To Help OpenAI
August 30, 2025
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Elon Musk's xAI has filed a lawsuit against former engineer Xuechen Li, alleging he stole trade secrets and the entire codebase of its Grok AI model before moving to OpenAI, shortly after selling $7 million in xAI stock.

The lawsuit, filed on Thursday, in California federal court, claims Li admitted to the theft and attempted to cover his tracks during a meeting on August 14, with further stolen material discovered on his personal devices.

The stolen trade secrets are described as "cutting-edge AI technologies with features superior to those offered by ChatGPT and other competing products." xAI claims this information could allow OpenAI to significantly accelerate the development of ChatGPT, potentially saving billions of dollars and years of research and development.

Li, a Stanford PhD graduate in Computer Science who completed his degree in 2024, was one of xAI's earliest employees, joining in 2024 and working on developing and training the Grok AI model. He sold $4.7 million in xAI stock in June 2025, and xAI facilitated an additional $2 million share sale in July 2025, reportedly to retain him due to his "critical contributions."

The lawsuit alleges that Li copied confidential information and trade secrets from his xAI-issued laptop onto personal storage systems on July 25, 2025, the same day he received the cash proceeds from the stock sales. He resigned three days later, on July 28, 2025, after accepting a job offer from OpenAI, which was scheduled to begin on August 19.

xAI alleges Li took extensive measures to conceal his actions, including deleting browser history, clearing system logs, renaming files, and compressing them before uploading to personal devices.

During an August 14 meeting with xAI's legal team, Li is said to have admitted to intentionally taking company files and covering his tracks. Forensic analysis later uncovered additional stolen materials on his devices that he had not disclosed.

The lawsuit seeks an unspecified amount of monetary damages and a restraining order to block Li's move to OpenAI.

The legal action comes amid a larger, highly publicized rivalry between xAI and OpenAI, with Musk having previously sued OpenAI and its CEO Sam Altman over the company's shift from a non-profit to a for-profit structure. xAI has also recently sued OpenAI and Apple for alleged anti-competitive practices.

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U.S. Bars EU Censorship Officials From Entering The Country

The U.S. State Department, under Secretary of State Marco Rubio, has imposed visa restrictions barring five Europeans from entering the United States, accusing them of leading efforts to pressure American tech firms to censor or suppress American viewpoints online.

The move announced Tuesday, is part of a broader President Trump administration campaign against foreign influence over online speech, using immigration law rather than platform regulations or sanctions.

The targeted individuals include former European Union Commissioner Thierry Breton, leaders of German anti-hate group HateAid, and heads of organizations focused on so-called disinformation and digital hate

Breton, former EU Commissioner for Digital Affairs, was sanctioned for his role in enforcing the EU’s Digital Services Act (DSA), which has clashed with tech companies like Elon Musk’s X. He previously sent a letter to Musk demanding compliance with the DSA ahead of a Trump interview.

Imran Ahmed, CEO of the Centre for Countering Digital Hate, was targeted for his organization’s 2022 “Disinformation Dozen” report, which highlighted anti-vaccine figures including Robert F. Kennedy Jr.

Clare Melford, CEO of the Global Disinformation Index, was sanctioned for allegedly using U.S. taxpayer funds to advocate for censorship and blacklisting of American speech.

Josephine Ballon and Anna-Lena von Hodenberg, leaders of HateAid, were sanctioned for their ostensible work combating so-called online hate and disinformation, with the group calling the U.S. actions an “authoritarian attack on free speech.”

The State Department cited these individuals as part of a “global censorship-industrial complex” that advances foreign government censorship campaigns targeting American speakers and companies.

The sanctions are based on a visa policy announced in May 2025 that restricts entry for foreigners deemed responsible for censorship of protected speech in the U.S. The Department of Homeland Security may initiate removal proceedings against those already in the country.

The move follows a broader trend of U.S. officials, including Vice President JD Vance, criticizing European nations for censorship, particularly over content related to the Covid-19 lab leak theory and other political topics.

The EU has not yet responded publicly to the sanctions, but European officials have expressed concern over the U.S. actions undermining European sovereignty.

The U.S. has also previously targeted visitors from certain African and Middle Eastern countries and the Palestinian Authority with similar visa restrictions.

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Spotify Music Library Scraped, Released Online By Activist Pirate Group: 86M Files

A pirate activist group known as Anna’s Archive has claimed to have scraped and begun releasing a massive archive of Spotify’s music catalog, asserting it has backed up nearly all of the platform’s most popular tracks. As of Tuesday. Spotify has confirmed the breach.

Anna’s Archive claims to have scraped 86 million audio files from Spotify, representing approximately 99.6% of total listens on the platform, with the entire archive totaling around 300 terabytes in size.

The archive includes metadata for 256 million tracks—covering an estimated 99.9% of Spotify’s catalog—already released via torrent, with the actual music files planned for future release in order of popularity. The group has also indicated that individual file downloads may be added if there is sufficient demand.

The group states this constitutes the “world’s first preservation archive” for music, prioritizing tracks by popularity and aiming to protect humanity’s musical heritage from potential loss due to disasters or corporate decisions.

The full release of the music torrents are expected to in the coming days, organized by popularity and quality—160 kbit/s for popular tracks and 75 kbit/s for less popular ones to conserve space.

Spotify has confirmed the incident and stated that it has identified and disabled the user accounts involved in the unlawful scraping. The company emphasized its ongoing commitment to protecting artists and rights holders, noting it has implemented new safeguards against such anti-copyright attacks, and is actively monitoring for suspicious behavior.

Anna’s Archive, known for its shadow library of books and academic papers, frames the action as a preservation effort rather than pure piracy, arguing that existing digital archives are overly focused on popular content and high-quality files. The group acknowledges that Spotify does not contain all music ever produced but considers it a strong starting point.

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The breach raises concerns about the potential use of the 300TB dataset to train AI models without consent, a growing ethical and legal issue in the tech industry. The group’s actions also highlight vulnerabilities in how public metadata and DRM can be exploited to access copyrighted content at scale.

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December 23, 2025
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China Builds EUV Prototype Machine To Challenge Western Advanced Chipmaking Dominance

China has completed a prototype extreme ultraviolet (EUV) lithography machine in a high-security Shenzhen laboratory, marking a major milestone in its drive for semiconductor independence through a state-led 'Manhattan Project-style' initiative.

The machine, operational since early 2025 and now undergoing testing, was built by a team of former ASML(Advanced Semiconductor Materials Lithography) Holding engineers like Lin Nan, who filed key patents. They reverse-engineered the Dutch company’s technology, using parts from older ASML systems and secondary markets to circumvent Western export controls.

While the prototype successfully generates EUV light, it has not yet produced functional chips, with analysts estimating a realistic timeline for working chip production between 2030 and 2035, despite an official government target of 2028.

The project, launched as a six-year national effort under President Xi Jinping’s strategic priorities, is coordinated by Huawei and overseen by Ding Xuexiang, a close confidant of Xi and head of the Central Science and Technology Commission.

Former ASML engineers were recruited with substantial incentives, including signing bonuses of up to $700,000, and worked under aliases with false identification cards to maintain secrecy.

The prototype occupies nearly an entire factory floor and is operated within a highly isolated, secure compound where staff often sleep on-site, with strict communication restrictions and surveillance.

Despite ASML CEO Christophe Fouquet’s public statements in 2024 and 2025 that China would need "many, many years" to develop EUV capability, the existence of the prototype suggests Beijing’s timeline may be accelerating significantly.

While the Chinese machine’s light generation is confirmed, major technical hurdles remain, particularly in replicating the precision optical systems—such as specialized mirrors from Germany’s Zeiss—that are critical for high-volume, reliable chip manufacturing.

The breakthrough challenges long-standing U.S.-led export controls that have barred China from acquiring advanced EUV systems since 2018, with the Biden administration expanding restrictions in 2022.

The ultimate goal, as stated by sources, is to produce advanced chips on entirely China-made machines and to fully remove U.S. influence from its semiconductor supply chains.

Advanced chip manufacturing machine generates extreme ultraviolet light to etch tiny circuits for AI, smartphones, and military systems—tech once monopolized by ASML

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