Xpeng is increasing efforts to protect its intellectual property and core technologies by conducting an internal review of compliance with non-compete agreements among former employees, according to a report by Chinese media outlet Guancha.
The investigation is focused on personnel who previously worked in key research and development divisions, including the company’s artificial intelligence and robotics operations, as competition for advanced technology talent intensifies across China’s electric vehicle sector.
Arbitration Case Targets Former Employee
According to the report, Xpeng has initiated labor arbitration proceedings against a former employee accused of violating a non-compete agreement after joining a competing company.
The company is reportedly seeking nearly 10 million yuan ($1.48 million) in damages and compensation.
Guancha reported that the employee signed a written commitment to observe a one-year non-compete period upon leaving Xpeng at the end of 2025.
The company allegedly continued making monthly non-compete compensation payments after the employee’s departure. However, Xpeng claims the individual subsequently accepted a position with a rival company and continued working in a related research and development role.
As a result, Xpeng argues that the employee may have breached contractual obligations relating to confidentiality and competitive employment restrictions.
In addition to requesting continued compliance with the non-compete agreement, the company is reportedly seeking repayment of compensation already provided, the return of stock-related gains, and additional financial penalties.
Growing Focus on Technology Protection
The case highlights increasing efforts by technology and automotive companies to safeguard intellectual property as artificial intelligence and robotics become central to future mobility strategies.
Xpeng has significantly expanded investment in emerging technologies, including physical AI, robotics, autonomous driving systems and low-altitude aviation projects.
Protecting proprietary research has become increasingly important as companies compete for highly specialized engineering and software talent.
R&D Spending Continues to Rise
According to company disclosures cited by Guancha, Xpeng’s research and development spending reached 9.49 billion yuan in 2025.
Approximately 4.5 billion yuan of that total was directed toward AI-related initiatives.
The report said Xpeng expects total R&D expenditure to increase to around 12 billion yuan in 2026, with roughly 7 billion yuan allocated to physical AI and related technologies.
The growing investment reflects the company’s ambition to expand beyond electric vehicles into broader intelligent mobility and robotics markets.
Ambitious Technology Roadmap
Chairman and Chief Executive Officer He Xiaopeng has outlined plans to accelerate development across several emerging technology sectors.
Earlier this year, He said the company intended to expand its global workforce by approximately 8,000 employees during 2026, including around 5,000 university recruits.
In an internal letter issued in February, He outlined targets that include mass production and commercial deployment of humanoid robots, flying vehicles and robotaxi services.
The strategy places Xpeng among a growing group of Chinese technology and automotive companies seeking to build integrated businesses spanning artificial intelligence, autonomous mobility and robotics.
Legal Challenges in High-Tech Talent Disputes
The report noted that non-compete disputes in China’s technology sector can be difficult to resolve because of the challenge of defining competitive relationships between companies.
Legal experts cited by Guancha said disputes often hinge on whether a former employee’s new employer operates in overlapping technology fields or participates in similar research activities.
As investment in AI, robotics and autonomous systems accelerates, companies increasingly face the challenge of balancing intellectual property protection with the mobility of highly skilled technical talent.
The latest arbitration case illustrates how competition for expertise is becoming a strategic issue as automakers seek leadership positions in next-generation technologies.