xAI Sues Worker for Giving OpenAI Secrets

Welcome to another edition of AI PlanetX.

xAI sues former engineer for allegedly stealing Grok secrets; Meta’s $14.3B AI investment already showing cracks; Nvidia reports 39% of Q2 revenue came from just two clients.

• Hottest AI News

• Top AI & SaaS Tools

• AI Tutorial: Quiz Yourself with Interactive Flashcards

• Top AI & Tech News

• AI Art Spotlight

• Prompt of the Day: Prompt to Master Any Topic

• AI Video Tutorial

• Course of the Day: Web Programming with Python & JS

Hottest AI News

xAI

xAI Sues Former Engineer for Allegedly Stealing Grok Secrets for OpenAI

Elon Musk's xAI is taking legal action against a former engineer, escalating the already heated rivalry between Musk's AI startup and OpenAI in what appears to be a high-stakes case of alleged corporate espionage.

Details:

• Xuechen Li, a former xAI engineer who helped build the Grok, is accused of stealing trade secrets on advanced AI features said to surpass ChatGPT. The lawsuit claims Li took the data in July after joining OpenAI and selling $7 million worth of xAI stock

• This marks another round in Musk’s feud with OpenAI, the company he co-founded. Musk has already sued OpenAI and CEO Sam Altman for straying from their mission, while OpenAI countersued him for harassment. xAI has also filed separate claims of market monopolization

• The case underscores the fierce fight for AI talent. xAI says Li admitted to taking files and “covering his tracks” in an August meeting. Investigators later found more stolen materials on his devices. The company seeks damages and a restraining order to block his move to OpenAI

As AI companies continue their race for tech supremacy, this lawsuit signals that the battle for talent and trade secrets may become as intense as the competition for users and market share.

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Meta

Meta's $14.3B Scale AI Investment Already Showing Cracks

Meta put $14.3 billion into Scale AI to catch up with OpenAI and Google. The June deal made CEO Alexandr Wang head of Superintelligence Labs with top executives. But months later, cracks are showing, casting doubt on one of Meta’s biggest AI ventures.

Details:

• Scale AI executive Ruben Mayer left Meta after just two months. Meta’s AI unit TBD Labs leans on rivals Surge and Mercor, with researchers calling Scale’s data low quality. That’s striking given Meta’s huge investment

• Scale struggles to move from cheap crowdsourced labor to expert talent, while Surge and Mercor started with high-paid specialists. It lost OpenAI and Google as clients, cut 200 staff in July, and Meta’s AI teams face chaos and low morale

• Meta’s AI division is bleeding talent, including ex-OpenAI hires, longtime GenAI staff, and researchers like Rishabh Agarwal, Chaya Nayak, and Rohan Varma. Recruitment misfires and weak acquisitions left Meta settling for Wang, a non-researcher

The rocky start to Meta's partnership with Scale AI represents more than just integration challenges — it highlights the fundamental difficulties facing even the world's largest tech companies.

Top AI & SaaS Tools

• AI Sales Rep for LinkedIn (Life-time Deal): AI sales assistant that finds, engages, and books demos with prospects 24/7 in 100+ languages—replacing LinkedIn Sales Navigator [Price increase tomorrow]

• FastVLM: Apple’s vision-language model that works real time in the browser, handling high-res images more efficiently and with smaller size [F-R-E-E]

• Higgsfield Speak 2.0: Upgraded AI voice and talking video tool that adds emotional expressiveness, contextual awareness, and support for 70+ languages

• Firecrawl v2.1.0: Latest update to this web scraping platform adds search categories, image extraction, hash-based crawling, and improved Google Drive scraping [F-R-E-E]

• Mirage 2: Real-time generative world engine where you upload an image and step into it as a live interactive world, available even on mobile [F-R-E-E]

How 433 Investors Unlocked 400X Return Potential

Institutional investors back startups to unlock outsized returns. Regular investors have to wait. But not anymore. Thanks to regulatory updates, some companies are doing things differently.

Take Revolut. In 2016, 433 regular people invested an average of $2,730. Today? They got a 400X buyout offer from the company, as Revolut’s valuation increased 89,900% in the same timeframe.

No wonder 10K+ everyday people are taking the chance on Pacaso.

Founded by a former Zillow exec, Pacaso’s co-ownership tech reshapes the $1.3T vacation home market. They’ve earned $110M+ in gross profit to date, including 41% YoY growth in 2024 alone. They even reserved the Nasdaq ticker PCSO.

The same institutional investors behind Uber, Venmo, and eBay backed Pacaso. And you can join them. But not for long. Pacaso’s investment opportunity ends September 18.

Invest While You Still Can

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AI Tutorial

How to Quiz Yourself with Interactive Flashcards in ChatGPT

Studying doesn’t have to be boring or overwhelming. With QuizGPT, ChatGPT can immediately create interactive flashcards from your chosen topic or uploaded materials. Here’s exactly how to do it.

1. Open ChatGPT

   Go to the ChatGPT website and make sure you’re logged into your account, or launch the mobile app on your device and ensure the app is updated.

2. Choose right model

   From the model selector, pick GPT-5 to ensure compatibility with QuizGPT.

3. Decide on study method

   • If you want to test yourself on a general subject, prepare your topic in mind (e.g., Physics, World History, Economics).

   • If you want the flashcards based on your own material, get your files (like lecture slides, class notes, or handouts) ready to upload.

4. Enter prompt

   Type this into ChatGPT:

   "I want to test my knowledge of [TOPIC]. Quiz me with very challenging questions using QuizGPT."

5. Upload material (optional but powerful)

   If you prefer personalized flashcards, upload your lecture slides, study notes, or course materials directly into ChatGPT. The AI will use them as the source for your questions.

6. Generate interactive flashcards

   ChatGPT will create flashcards tailored to your topic or uploaded files. These will appear in an interactive format so you can test yourself step by step.

7. Start quizzing yourself

   Work through the flashcards, answer each question, and use them as active recall practice to reinforce learning.

Tip: Ask for a mix of multiple-choice, true/false, and open-ended flashcards to challenge yourself in different ways.

Top AI & Tech News

• Nvidia disclosed that two unnamed direct customers ("Customer A" and "Customer B") generated 39% of its Q2 revenue

• Former OpenAI researcher says that with AI boosting the economy, a monthly universal basic income (UBI) of $10,000 could become possible

• AI data centers are facing massive financial bubble, with facilities expected to lose $20-25 billion annually due to costs far exceeding realistic revenue potential

• Meta announced temporary changes to how it trains AI chatbots to better protect teens after a Reuters probe revealed internal policies permitting inappropriate chats with minors

AI Art Spotlight

Model: Midjourney V7

Prompt:

A majestic knight in shining armor, holding a gleaming sword, reflective polished steel with dramatic highlights, slightly exaggerated heroic proportions, elegant engravings on the armor, radiant and noble presence, cinematic high contrast lighting, golden glow, epic fantasy realism, powerful yet graceful stance --ar 9:16 --raw --v 7

Prompt of the Day

Prompt to Master Any Topic With Feynman Technique

This prompt transforms you into a Feynman Technique learning coach that can break down any complex topic into crystal-clear explanations a 12-year-old could understand. Instead of drowning in jargon and memorization, this prompt guides you through iterative learning cycles using everyday analogies, targeted questioning, and step-by-step refinement until you achieve true mastery.

Top AI Video Tutorial

12 Google AI Tools You Should Know About

Complimentary AI Course of the Day

Web Programming with Python and JavaScript

This course teaches practical full-stack web development through hands-on projects covering database design, scalability, security, and user experience. You will learn to design and consume APIs, build interactive user interfaces, and integrate cloud services such as GitHub and Heroku for deployment and collaboration.