xAI

US Department of Justice claims NAACP lawsuit threatens ‘national, economic, and energy security’.

The United States government has intervened on the side of Elon Musk’s xAI in a legal dispute over a $20bn data centre, claiming that efforts to block a related power project threaten national security.

In a court motion filed this week, the Department of Justice requested the dismissal of a lawsuit accusing xAI of illegally operating dozens of natural gas turbines erected to power the Colossus 2 data center in Memphis, Tennessee.

The National Association for the Advancement of Colored People (NAACP), the largest civil rights group for African Americans, filed the lawsuit in April under the 1963 Clean Air Act, which allows citizens to seek injunctions and civil penalties against alleged polluters.

The NAACP alleges that xAI built the turbines, located in nearby Southaven, Mississippi, without obtaining the necessary permits, exposing hundreds of thousands of residents to harmful pollutants linked to “increases in asthma, respiratory diseases, heart problems, and certain cancers”.

The lawsuit notes that a “much larger share” of residents are Black compared with the US general population.

In its motion, filed in a US District Court on Monday, the Justice Department accused the NAACP of threatening “national, economic, and energy security by seeking to shut off the power supply for artificial intelligence innovation that supports the Department of War’s military operations”.

The motion also claims that the US Constitution vests the power to seek civil penalties “conclusively and preclusively” in the executive branch, including the “discretion to decide when such an enforcement action is unwarranted or inconsistent with federal enforcement priorities”.

Adam Gustafson, the top prosecutor at the Justice Department’s environment and natural resources division, said in a statement that the government would “not sit idly by while private organisations use environmental laws to undermine our national security”.

xAI, which is a subsidiary of Musk’s SpaceX, did not immediately respond to a request for comment.

Earthjustice, an advocacy group representing the NAACP in the lawsuit, condemned the intervention as a “massive power grab” by President Donald Trump’s administration.

“Trump’s Justice Department wants to shield Elon Musk’s data center company, xAI, from being held accountable for its illegal pollution – and it’s attempting to grab power from impacted communities, the courts, and Congress to do so,” Laura Thoms, director of enforcement for Earthjustice, said in a statement.

“There is no moral or legal precedent for this.”

Ann Carlson, a professor of environmental law at  UCLA School of Law, described the Trump administration’s argument as a “brazen attempt” to limit enforcement of the Clean Air Act.

“It’s based on a radical notion that the executive branch can dismiss lawsuits brought by citizen groups that Congress has authorised based on no rationale at all,” Carlson told Al Jazeera, adding that the Justice Department’s position would let “polluters off the hook even for blatant violations of the law.”

“This motion is also just one of many ways in which the administration is undermining efforts to protect air quality,” Carlson said.

The Trump administration has cultivated close ties with Musk, the world’s richest man, tapping the tech titan as a temporary cost-cutting tsar and using xAI’s flagship model Grok in the Pentagon’s drive to become an “AI-enabled fighting force”.

In testimony in support of Monday’s motion, Cameron Stanley, the Pentagon’s top official for AI, said that Grok had been used to launch more than 2,000 munitions at 2,000 targets within the first 96 hours of the US-Israel war on Iran.

If Grok cannot be deployed and upgraded due to “limitations in energy supply or limited reserve compute capability”, numerous tools used by the Pentagon would be “severely impacted”, Stanley said in a declaration made under oath.

The lawsuit originally filed in September focused on broader alleged misappropriation of confidential information.

A United States federal judge has dismissed a lawsuit by Elon Musk’s artificial intelligence company xAI that accused rival Sam Altman’s OpenAI of stealing trade secrets for chatbots.

US District Judge Rita Lin in San Francisco said on Monday that xAI failed to show that OpenAI induced former xAI senior engineer Xuechen Li to divulge confidential information related to its Grok chatbot, or that OpenAI engineers knew Li might have disclosed any.

Lin dismissed the lawsuit with prejudice, saying it would be “futile” to continue. She dismissed an earlier version in February. The lawsuit originally filed last September focused on broader alleged misappropriation of confidential information, including source code, by xAI employees who left for jobs at OpenAI.

Monday’s decision is Musk’s second legal loss against OpenAI in four weeks.

On May 18, a federal jury ruled against Musk, the world’s richest person, in his $150bn lawsuit accusing OpenAI and Altman of “stealing a charity” by betraying the company’s original mission as a nonprofit to enrich themselves.

The xAI business is part of Musk’s rocket, satellite and AI company SpaceX.

Lawyers for xAI did not immediately respond to requests for comment. OpenAI and its lawyers did not immediately respond to similar requests.

Discussing past work

The amended complaint focused on a presentation that Li gave while OpenAI was recruiting him.

Musk’s company said OpenAI wanted secrets related to the July 2025 release of Grok 4, knowing its forthcoming update to ChatGPT “could not compete” on complex reasoning, and because OpenAI was “lagging” in reinforcement learning and post-training techniques that Li understood.

But the judge said asking job candidates to discuss their prior work was routine, and one could not infer that OpenAI pushed Li to leak anything confidential.

“To hold otherwise would potentially expose employers to liability any time they inquire about a candidate’s past work,” Lin wrote.

OpenAI has said Li never worked for the company and that it never acquired xAI secrets.

In seeking dismissal, lawyers for OpenAI wrote: “OpenAI does not need or want anyone’s trade secrets, especially not from xAI, which is failing in the marketplace and hemorrhaging talent.”

Li is being sued separately by xAI and has denied wrongdoing.