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Saturday, July 18, 2026

Just-In: Whistleblower Files Lawsuit Against Elon Musk’s xAI & SpaceX Ahead IPO Listing - CoinGape

Highlights

  • Elon Musk's SpaceX and xAI face a lawusit by a former employee.
  • Devin Kim, the whistleblower in the case, claims unlawful termination.
  • The suit comes on the heels of the June 12 SpaceX debut in the stock market, which led to massive controversy.

Elon Musk’s xAI and SpaceX have been sued by a former engineer. The whistleblower claims he was fired for warning about safety concerns related to the company’s flagship chatbot, Grok. The lawsuit comes as investors are watching Musk’s business empire as it prepares for an IPO listing for SpaceX.

Former xAI Employee Sues Elon Musk’s Companies

An early employee of xAI, Devin Kim, says he advocated for more rigorous testing and safety measures to mitigate potentially harmful AI outputs, but was fired. In its complaint filed in California’s Santa Clara County Superior Court, Kim said Grok is also inadequate in preventing misinformation, bias, and potentially harmful responses.

“This case is about more than one employee’s termination. It is about whether people closest to the development of powerful AI technologies can raise safety concerns without risking their careers,” stated Qiaojing Ella Zheng, lead counsel for Kim.

Zheng also claimed that, “When a company punishes employees like Mr. Kim for speaking up about issues that could have significant consequences for the public, it must be held accountable.”

The lawsuit states that Kim is one of xAI’s earliest hires and a “leading advocate” for AI safety within the company....



Read Full Story: https://news.google.com/rss/articles/CBMingFBVV95cUxPM0ZUS1RwRWJ6VjJKbWlHNkhz...