Tesla Sues Former Engineer for Alleged Trade Secret Theft in AI Robotics Project
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Tesla lawsuit says former engineer stole secrets for robotics startup
June 12 (Reuters) - Tesla (TSLA.O), opens new tab has sued one of its former engineers and his startup in California federal court, accusing them of stealing trade secrets related to its robot project Optimus to build a competing business for developing robotic hands. The lawsuit, opens new tab filed on Wednesday said Jay Li took confidential Tesla files before leaving the company and used them to enable his startup Proception to "shortcut the typical development process" for robot hands. "Through Li's pilfering, Defendant Proception purportedly achieved in a matter of months what it has taken Tesla over four years, hundreds of employees, and billions of dollars to achieve," the complaint said. Spokespeople for Proception and attorneys and spokespeople for Tesla did not immediately respond to requests for comment on the lawsuit on Thursday. Tesla said in the complaint that it had devoted "extraordinary resources" to developing Optimus, a humanoid robot powered by artificial intelligence. The lawsuit said Li worked on the Optimus sensor team from 2022 to 2024. Tesla alleged that Li downloaded confidential files related to Optimus' robotic hand movement research before leaving the company last year, despite no longer working on Optimus' hands at the time. The complaint said Li founded Proception six days after leaving Tesla and that the startup touted its ability to build robotic hands five months later. Proception's hands have "striking similarities" to Tesla's, according to the lawsuit. Tesla requested an unspecified amount of monetary damages and a court order blocking Li and Proception from misusing its trade secrets. The case is Tesla Inc v. Proception Inc, U.S. District Court for the Northern District of California, No. 5:25-cv-04963. For Tesla: Josh Krevitt, Orin Snyder and Angelique Kaounis of Gibson Dunn & Crutcher For Proception and Li: attorney information not yet available Reporting by Blake Brittain in Washington Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:LitigationManufacturingSustainable & EV Supply ChainEV StrategyProducts Blake Brittain Thomson Reuters Blake Brittain reports on intellectual property law, including patents, trademarks, copyrights and trade secrets, for Reuters Legal. He has previously written for Bloomberg Law and Thomson Reuters Practical Law and practiced as an attorney.
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Elon Musk's Tesla Files Lawsuit Alleging Ex-Employee Stole Humanoid Tech To Launch Rival - NVIDIA (NASDAQ:NVDA), Tesla (NASDAQ:TSLA)
Accusing a former employee of stealing confidential materials related to Optimus and launching a rival startup, Tesla Inc. TSLA has filed a lawsuit in federal court. What Happened: Zhongjie "Jay" Li, who was part of the team working on Tesla's robotic hand sensors from August 2022 to September 2024, allegedly downloaded sensitive files just before resigning from his position, Fortune reports. Filed on Wednesday in San Francisco, the lawsuit claims that within a week of his departure, Li incorporated a new company, Proception Inc., which is now based in Palo Alto. Within five months, Proception reportedly showcased humanoid hands similar to Tesla's own designs. The lawsuit also names Proception as a defendant and accuses both parties of misappropriating trade secrets. See Also: Elon Musk Net Worth Down $64 Billion In 2025 -- But Tesla CEO Still Richer Than Value Of Ford, General Motors, Stellantis, Toyota Combined Why It Matters: CEO Elon Musk has described the company's robotic hand as "the most sophisticated ever made," and projected that Optimus could become the company's most valuable product in the long run. Last month, Musk shared his belief that humanoid robots will start impacting countries' GDPs in "4-5 years." Musk has also asserted that Optimus can learn tasks simply by watching YouTube videos, much like humans can. Nvidia Corp. NVDA CEO Jensen Huang has suggested that Optimus might be the first humanoid robot to reach both mass production and advanced technical capability. "I think this is likely to be the next multi-trillion-dollar industry," he said. Read Next: Cathie Wood Buys Tesla Again, Calls Elon Musk's EV Giant 'Largest AI Project On Earth:' Report Photo courtesy: Shutterstock NVDANVIDIA Corp$142.92-1.43%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum69.76Growth98.63QualityNot AvailableValue7.10Price TrendShortMediumLongOverviewTSLATesla Inc$311.40-2.42%Market News and Data brought to you by Benzinga APIs
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Tesla has filed a lawsuit against a former engineer and his startup, accusing them of stealing trade secrets related to its Optimus robot project to develop competing robotic hands.
Tesla's Legal Action Against Former Engineer
Tesla, the electric vehicle and technology giant, has filed a lawsuit against one of its former engineers, Jay Li, and his startup Proception Inc., accusing them of misappropriating trade secrets related to its humanoid robot project, Optimus. The lawsuit, filed in California federal court, alleges that Li took confidential Tesla files before leaving the company and used them to accelerate the development of robotic hands at his new venture.
Allegations of Trade Secret Theft
According to the complaint, Li worked on the Optimus sensor team from 2022 to 2024. Tesla claims that before his departure, Li downloaded confidential files related to Optimus' robotic hand movement research, despite no longer working directly on that aspect of the project. The lawsuit states that Li founded Proception just six days after leaving Tesla, and within five months, the startup was able to showcase robotic hands with "striking similarities" to Tesla's designs.
Tesla's Investment in Optimus
Tesla has emphasized the significance of the Optimus project, stating in the complaint that it has devoted "extraordinary resources" to developing the humanoid robot powered by artificial intelligence. CEO Elon Musk has described the company's robotic hand as "the most sophisticated ever made" and has projected that Optimus could become Tesla's most valuable product in the long run.
Source: Benzinga
Implications for the AI and Robotics Industry
The lawsuit highlights the growing importance and competitive nature of AI and robotics technology in the tech industry. Nvidia CEO Jensen Huang has suggested that Optimus might be the first humanoid robot to reach both mass production and advanced technical capability, potentially becoming "the next multi-trillion-dollar industry".
Tesla's Legal Demands
In the lawsuit, Tesla is seeking an unspecified amount of monetary damages and a court order to prevent Li and Proception from misusing its trade secrets. The case, filed as Tesla Inc v. Proception Inc in the U.S. District Court for the Northern District of California, underscores the high stakes involved in protecting intellectual property in the rapidly evolving field of AI and robotics.
Broader Context of AI Development
This legal battle comes at a time when AI and robotics are gaining increasing attention in the tech world. Elon Musk has recently shared his belief that humanoid robots will start impacting countries' GDPs in "4-5 years". He has also claimed that Optimus can learn tasks simply by watching YouTube videos, much like humans can, highlighting the advanced capabilities Tesla is developing in this field.
As of the time of reporting, spokespeople for Proception and attorneys for Tesla had not immediately responded to requests for comment on the lawsuit. The case continues to unfold, drawing attention to the critical issues of intellectual property protection and competition in the AI and robotics sector.
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