OpenAI has requested a federal judge to dismiss a trade-secret lawsuit filed by Elon Musk's xAI, which claims that OpenAI poached employees to steal confidential information. OpenAI argues that the lawsuit is an attempt by Musk to intimidate and distract from the challenges faced by xAI, asserting that employees have the right to choose their employers.

The XAI-X merger is viewed as a strategic move within Elon Musk's expanding empire, potentially enhancing his influence in the AI sector. Analysts suggest that this deal could be advantageous for investors betting on Musk’s vision and leadership in technology innovation.

Elon Musk announced that his AI startup xAI will take legal action against Apple, alleging antitrust violations related to App Store rankings. Musk claims Apple's practices favor OpenAI's ChatGPT, making it difficult for other AI apps, like xAI's Grok, to compete for the top spot. OpenAI's CEO Sam Altman responded to Musk's claims, emphasizing the need for transparency in competition.

Musk's X.AI Holdings is reportedly in the process of raising a significant private funding round, which could be the second-largest of its kind ever recorded. The investment is expected to bolster the company's ambitious plans in the artificial intelligence sector.