Former xAI Engineer Sues xAI and SpaceX Over Alleged Wrongful Termination

A former xAI engineer filed a lawsuit against xAI and SpaceX this week, alleging he was fired after repeatedly warning company leaders about safety risks associated with Grok, the artificial intelligence firm's flagship chatbot.

According to a complaint filed in California's Santa Clara County Superior Court, former xAI technical staff member Devin Kim claimed that he was fired after repeatedly warning that Grok needed stronger safeguards against misinformation, bias, and dangerous outputs—including content that could facilitate bioterrorism—and that inadequate testing left the model vulnerable to racial and political bias.

“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,” Qiaojing Ella Zheng, a partner at law firm Sanford Heisler Sharp McKnight and lead counsel for Kim, said in a statement. “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 claims Kim was one of xAI's earliest employees and “a leading advocate” for AI safety in the company, who joined the firm in part because of Elon Musk's history of warnings about the dangers posed by advanced AI.

“Mr. Kim turned a lifelong interest in science and computer programming into a career in the emerging field of AI,” the lawsuit said. “Along the way, he saw firsthand the harms that AI can cause when developed without proper safeguards and committed himself to protecting users and the public from those harms.”

The complaint also pointed to controversies involving Grok that attorneys for Kim said reflected the risks he raised internally. Among them was the chatbot's "MechaHitler" meltdown last summer, during which Grok generated a wave of antisemitic responses, triggering public backlash and prompting xAI to issue a fix.

Kim’s attorneys also cite more recent investigations and lawsuits tied to Grok's alleged generation of nonconsensual sexual deepfakes, including cases in Baltimore and California alleging the tool was used to create sexualized images of minors.

According to Kim’s attorneys, by “retaliating against and wrongfully discharging” Mr. Kim, xAI violated the California Labor Code, California public policy and common law, and California’s Unfair Competition Law.

The lawsuit also follows other high-profile disputes over AI safety and accountability, including allegations raised by former OpenAI researcher Suchir Balaji, who publicly accused OpenAI of improperly using copyrighted data to train its models before his death in 2024.

Although Kim’s complaint focuses on Grok and xAI's safety practices, SpaceX is also named as a defendant, and comes as SpaceX prepares for a widely anticipated IPO following Musk's decision to fold xAI and X into the company.

“This case is not about opposing innovation,” David Sanford, chairman and co-founder of Sanford Heisler Sharp McKnight, said in a statement. “Devin Kim and Elon Musk have publicly shared a fundamental concern that advanced artificial intelligence must be developed safely and responsibly because of its profound implications for humanity.”

Kim alleges that his termination cost him substantial equity compensation and is seeking restoration of forfeited equity, compensatory damages, punitive damages, attorneys' fees, and other relief. Earlier this month, Kim was named as the new president of the nonprofit Center for AI Safety.

“Whistleblowers like Devin Kim play a critical role in calling out corporate wrongdoing, and the law protects employees who raise those concerns,” Sanford said.