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Tesla sues former Optimus engineer for stealing trade secrets

Tesla is suing a former engineer who worked on Optimus after he left and immediately started a robotics company that achieved quick development of a hand.

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Credit: Elon Musk | X

Tesla is suing former Optimus engineer Jay Li in federal court after accusing him of stealing trade secrets and using them to enable a startup he founded after he left.

Li is accused of stealing confidential files and using them to help get his company, “Proception,” off to a rocking start. Tesla says the files Li took helped his new startup “shortcut the typical development process” for robot hands, something that took Tesla years to develop and evolve.

The company said in the complaint (via Reuters):

“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.”

Li was an employee at Tesla for several years, working on the Optimus sensor team from 2022 to 2024. The company says it utilized and devoted “extraordinary resources” to the development of Optimus, which has come a long way since its unveiling several years ago.

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Tesla Optimus to receive hands with 22 degrees of freedom later this year

Li allegedly downloaded confidential files related to Optimus’ robotic hand movement research before departing the company. He did not work on the hands at the time. However, he left and swiftly started Proception, as the suit states the company was founded just six days after he left Tesla.

Proception was gloating about its ability to build robotic hands just five months after the company was founded. Tesla says the hands have “striking similarities” to its own design for Optimus.

The company is looking for monetary damages and a court order that would block Proception from misusing the secrets it accuses Li of taking.

This is not the first suit Tesla has filed over trade secrets and confidential information theft. Recently, it accused German-Canadian dual citizen Klaus Pflugbeil of stealing battery-related secrets. He was arrested and sentenced to two years in prison.

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The U.S. Department of Justice used an undercover sting to arrest Pflugbeil.

Tesla is being represented by Josh Krevitt, Orin Snyder, and Angelique Kaounis of Gibson Dunn & Crutcher.

The case is Tesla Inc. v. Perception Inc., U.S. District Court for the Northern District of California, No. 5:25-cv-04963.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk

Elon Musk subtly confirms one of Tesla AI8’s uses, and it’s literally out of this world

Elon Musk appears to have subtly confirmed that Tesla’s upcoming AI8 chip won’t be limited to vehicles or robots alone.

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Image used with permission for Teslarati. (Credit: Tom Cross)

Elon Musk appears to have subtly confirmed that the uses of Tesla’s upcoming AI8 chip won’t be limited to vehicles or humanoid robots alone.

If Musk’s recent responses on X are any indication, it would appear that Tesla’s AI8 will be used by the CEO’s other companies, and its applications would literally extend out of this world.

Tesla’s AI8 could extend beyond vehicles

Musk’s update came on the heels of his recent comments, where he revealed that Tesla was not just working on its AI5 and AI6 chips. The company is also designing AI7 and AI8. This comment caught a lot of attention, with some wondering why Tesla feels the need to design an AI8 chip when AI4 seems on track to be a good fit for autonomous driving. 

Amidst these speculations, an X user suggested that Elon Musk’s comment about AI8 being out of this world could actually be quite true in the literal sense, as it could be used as the chip for SpaceX’s orbit data centers. Musk subtly confirmed this, as he responded to the X user’s post with a bullseye emoji.

Musk’s subtle confirmation that AI8 will be used by SpaceX’s in-space data centers presents a pretty interesting future for the electric vehicle maker. Synergy among Elon Musk-led companies is nothing new, but having Tesla produce chips for SpaceX is undoubtedly something that’s never really been done before.

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SpaceX’s space-based computing with Starlink V3 satellites

Musk previously stated that SpaceX plans to use its Starlink V3 satellites to develop space-based data centers. In response to an Ars Technica report on autonomous space construction, he wrote on X: “Simply scaling up Starlink V3 satellites, which have high-speed laser links, would work. SpaceX will be doing this.”

The concept, while ambitious, could address growing energy and cooling constraints facing Earth-based data centers amid the AI boom. Space-based clusters could also cut down on land and water usage, though critics have questioned their cost and maintainability.

Musk recently called the orbital data center project “a very big deal,” and given SpaceX’s history of turning improbable ideas into operational systems, it may not be too far-fetched at all, especially since SpaceX’s Starlink V3 platform is capable of up to 1 terabit per second (Tbps) throughput.

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Elon Musk

Elon Musk maps out Tesla’s AI chip iterations, and they’re pretty nutty

Based on the CEO’s post, it appears that Tesla is already exploring generations as far as AI8.

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Elon Musk recently revealed new details about Tesla’s next-generation AI5 chip while hinting at even more advanced iterations of its custom silicon. 

Based on the CEO’s post, it appears that Tesla is already exploring generations as far ahead as AI8.

Elon Musk teases Tesla’s chip development

In his X post, Musk stated that he had just completed a design review with Tesla’s chip engineers in California and Texas for the company’s upcoming AI5 chip. This was not surprising at all, considering that Musk has been discussing AI5 for quite some time now. What was surprising, however, were his comments that followed.

“And AI6 and AI7 will follow in fast succession. AI8 will be out of this world,” he wrote in his post, adding in a follow-up that his chip design review would be continuing the next day, followed by an Optimus demo review.

Considering that Tesla is currently rolling out a Robotaxi service using cars that are equipped with AI4 chips, some industry watchers have expressed interest in why the company is developing several generations’ worth of silicon for the company’s products. Inasmuch as AI4 might be enough for FSD and the Robotaxi rollout today, however, products such as Optimus might benefit from a more advanced chip. 

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Even AI5 will already be insanely impressive

During Tesla’s Q3 2025 earnings call, Musk described AI5 as “an amazing design” that represents a full evolution from the AI4 chip currently used in its vehicles and data centers. The new hardware, which will be manufactured by both Samsung in Texas and TSMC in Arizona, is expected to deliver up to 40x performance gains compared to its predecessor.

Tesla’s in-house engineering team redesigned the chip from the ground up, removing traditional components such as GPUs and image signal processors to improve efficiency and power måanagement. Musk said the chip now fits within a half-reticle design, calling it “a beautiful chip” into which he’s “poured so much life energy.”

Musk confirmed Tesla’s plan to create an oversupply of AI5 chips that could power not only vehicles but also humanoid robots and data centers. He emphasized that Tesla’s vertically integrated approach, designing both hardware and software, gives it a unique edge in scaling AI applications.

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Elon Musk

Tesla to offer Full Self-Driving gifting program: here’s how it will work

Tesla executive Raj Jegannathan said the company would be shipping the gifting program out before the holidays, making a great gift for owners just in time for Christmas.

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Credit: Tesla

Tesla will soon offer a gifting program for its Full Self-Driving (Supervised) suite, allowing people to gift a subscription to the semi-autonomous driving software for a variety of timeframes.

The idea would allow people to gift Full Self-Driving as a trial, potentially shifting them to subscribe or even buy the software outright if they find it useful.

Tesla is overhauling its Full Self-Driving subscription for easier access

FSD is a pretty difficult thing to not use once you have it, and while you still have to pay attention, and it has its shortcomings, it takes a lot of the stressors out of driving.

Tesla executive Raj Jegannathan said the company would be shipping the gifting program out before the holidays, making a great gift for owners just in time for Christmas.

Full Self-Driving is Tesla’s semi-autonomous driving platform that is currently among the most robust options on the market. As a personal user, I find it to be an extremely beneficial feature that I use on a daily basis.

While Tesla does offer gift cards, this would be a great option to choose the present you’re giving to a family member or friend.

Tesla offers a subscription to Full Self-Driving in the United States for $99 per month; it gives people an opportunity to try the suite for a month and is more affordable in the short term for those who cannot swing the current $8,000 fee to purchase it outright.

CEO Elon Musk has advised every Tesla owner to purchase the suite outright. In 2020, he confirmed that a subscription program would be released, but he said, “It will be economically better to have bought FSD.”

He continued in 2021, stating that “buying FSD will still be a better long-term deal than subscription.

He has also said that the monthly subscription price could rise as FSD goes to wide release, but that has yet to happen. In fact, it was originally $199 a month, but Tesla decreased the price to $99. We’re hopeful it doesn’t get more expensive.

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