Elon Musk Tilts Resources to xAI, Faces Lawsuit and Poaches Tesla Employees

TapTechNews August 9th news, the tech media electrek reported yesterday (August 8th) that Elon Musk has further tilted resources towards his xAI company. So far, more than a dozen Tesla employees have been hired for its language model Grok, and Tesla shareholders have therefore filed a lawsuit.

Filed by shareholders

In the past period of time, Musk has repeatedly emphasized in public that Tesla is an AI company, but this situation changed after Musk founded a new artificial intelligence startup company xAI last year.

TapTechNews reported in June this year that a group of Tesla investors sued Musk, Tesla company and board members, accusing Musk of transferring resources from Tesla to his artificial intelligence startup company xAI, causing damage to Tesla.

The lawsuit alleges that the transferred resources include poaching AI employees from Tesla, transferring Tesla's microchips to X (Twitter) and xAI, and xAI also uses Tesla's data to develop its own software/hardware, while Tesla has not received compensation.

Poaching talents

Querying the employee information on the LinkedIn platform, it is found that Musk's xAI company has poached more than a dozen former Tesla employees.

Data collection project manager Matteo Jin is the latest talent who switched from Tesla to xAI. After leaving Tesla for nearly 5 years, he became the chief mentor of xAI (the main job is to be responsible for annotating data):

Sources also said that at least 5 Tesla engineers engaged in AI work have joined xAI, and among the more than a dozen Tesla employees who joined xAI, most are engaged in data annotation work, and they are now the AI mentors of Musk's new startup company.