Former xAI engineer sues company over wrongful termination after raising Grok safety concerns

Devin Kim spent roughly 18 months at xAI trying to get the company to take safety guardrails on Grok seriously. The company’s response, according to his lawsuit, was to fire him before he could finish making his case.

Kim, an AI engineer who joined xAI in March 2024, filed a wrongful termination and retaliation lawsuit in Santa Clara County Superior Court against both xAI and its parent company SpaceX. The complaint alleges he was let go in September 2025 by co-founder Jimmy Ba, and the timing was not coincidental: Kim claims the termination came just before he was set to present safety evidence directly to the company’s leadership team.

What Kim is actually alleging

Kim says he repeatedly raised concerns about insufficient safety measures on Grok, xAI’s chatbot, and that the company retaliated by showing him the door.

His complaint goes further than just claiming personal mistreatment, though. Kim alleges that xAI’s negligence in prioritizing safety “virtually guaranteed” harmful consequences. Those consequences, per the filing, include potential discrimination and the dissemination of information related to weapons of mass destruction.

The lawsuit seeks unspecified damages.

The SpaceX IPO complication

SpaceX acquired xAI in February 2026, which is why both entities are named as defendants. SpaceX is currently approaching what’s expected to be one of the largest IPOs in history, with an anticipated valuation north of $1.7 trillion.

Coverage of the lawsuit began circulating on June 10-11, 2026, days before SpaceX’s anticipated public offering.

Kim’s post-xAI career adds a layer

After leaving xAI, Kim took on the presidency of the Center for AI Safety, a nonprofit organization focused on addressing large-scale risks from artificial intelligence systems.

What this means for investors

AI safety regulation is accelerating globally. The European Union has already implemented its AI Act. A lawsuit that alleges a company’s safety negligence “virtually guaranteed” unlawful outcomes is the kind of exhibit that regulators and legislators cite when justifying new rules.

For SpaceX specifically, the acquisition of xAI was meant to consolidate Musk’s AI ambitions under a single corporate umbrella. That consolidation now means SpaceX inherits xAI’s liabilities, both legal and reputational.

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