A group of Tesla investors filed a lawsuit against Elon Musk, the company and members of its board of directors. They claim the automaker suffered after Musk diverted resources to his company xAI.
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This involves hiring Tesla AI employees, sending Tesla microchips to X (formerly Twitter) and xAI, and “xAI uses Tesla data to develop its own xAI software/hardware, all without compensation from Tesla,” it states the demand. Details are provided by arstechnica.com.
It was filed in the Delaware Court of Chancery. Its authors were three Tesla shareholders: the Cleveland Bakers and Teamsters pension fund, Daniel Hazen and Michael Giampietro. Musk must compensate Tesla for financial damages and transfer his stake in xAI to Tesla.
The plaintiffs allege that after founding xAI in March 2023, “Musk moved numerous key AI-focused employees from Tesla to xAI” and then transferred Nvidia GPUs from Tesla to X and xAI. According to them, the businessman attracted potential investors to xAI, but at that time he used information belonging to Tesla.
We previously reported that Musk became $37 billion richer in five days amid news of Tesla’s Autopilot entering the Chinese market.
Author:
Nikolai Tikhonov
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
