U.S. Magistrate Judge Lisa J. Cisneros ruled that xAI has a legitimate interest in records reflecting information Li disclosed to OpenAI, noting that xAI cannot be expected to take Li's word for what he shared when he faces potential criminal penalties.
However, Cisneros found xAI's original request for "all documents and communications" related to Li's hiring process swept too far, imposing an undue burden on the non-party OpenAI.
The court limited the request to documents reflecting information communicated by or to Li regarding AI technology, or the type, quantity, quality, or value of information about xAI or its products possessed by Li.
The order also restricts the search to the time period between Li's initial contact with OpenAI and the decision not to hire him, and limits the number of custodians to four to be selected by xAI following a meet-and-confer process.
OpenAI had objected to the request as unduly burdensome, arguing that its hiring process is sensitive and that it had already produced documents regarding Li's interview process.
xAI had proposed narrowing the request to documents reflecting "xAI information," but the court found that standard too vague, given that Li may not have specifically characterized the information as such.
Cisneros noted that even with perfect knowledge of the source of the information, the parties might dispute whether certain data constitutes "xAI information" or generalized knowledge about artificial intelligence technology.
The judge acknowledged that the discovery process might implicate sensitive OpenAI information but ruled that the case's robust protective order, including attorneys'-eyes-only provisions, was sufficient to mitigate those risks.
OpenAI is permitted to redact portions of produced documents that consist of highly sensitive internal information unrelated to Li, with the court finding that any remaining risk of competitive harm is warranted by the potential relevance of the information.
The parties are directed to meet and confer regarding the bounds of the relevant time period and the selection of the four custodians, with a joint letter due within one week.
Cisneros is a magistrate judge in the Northern District of California, where the case is pending.