Partner Craig Smith quoted in Bloomberg Law Article on X.AI Trade Secrets Litigation

X.AI Suit Brings Trade Secrets Litigation to Fertile Ground

The trade secrets lawsuit X.AI filed against a former engineer heralds an aggressive approach from generative AI companies in a landscape driven by exploding revenues and a competitive hunt for top talent.

Partner Craig R. Smith, head of L&A’s Litigation team, was recently quoted in coverage of X.AI Corp. v. Li, a trade secrets lawsuit that underscores how aggressively generative AI companies are moving to protect their intellectual property in today’s hyper-competitive market.

In the Bloomberg Law article, Craig noted that the case signals a turning point:

“When you have this unprecedented competition for talent in the AI space, you’re going to see companies be much more aggressive in how they enforce their trade secrets.”

With billions of dollars at stake and a limited pool of elite talent, companies are tightening security, moving quickly against suspected violations, and reinforcing protections around confidential information.

Craig commented that the “arms race for AI talent” and “incredible” incentives being offered can cause tricky situations when employees are jumping from job to job:

“A lot of them are young and may have no experience with trade secrets law or best practices for leaving one company and joining another.”

Read more about the case and its implications for the future of trade secrets law here. [paywall]