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Judge Dismisses xAI Trade Secret Lawsuit Against OpenAI
15 Jun
Summary
- xAI's trade secret lawsuit against OpenAI was dismissed by a judge.
- The judge found no evidence of trade secret misappropriation.
- This marks the second dismissal for xAI's case.

A federal judge in San Francisco has dismissed a trade secret lawsuit brought by Elon Musk's artificial intelligence company, xAI, against rival OpenAI. The lawsuit, filed last September, alleged that former xAI employees had stolen confidential information, including source code for the Grok chatbot, when they moved to OpenAI.
U.S. District Judge Rita Lin stated that xAI did not provide sufficient evidence to show that OpenAI had induced a former xAI engineer to misappropriate trade secrets. Furthermore, the judge found no proof that the engineer had disclosed xAI's confidential information during OpenAI's recruitment process.
This is the second time the lawsuit has been dismissed, with an earlier version thrown out in February. Judge Lin dismissed the current case with prejudice, indicating that further attempts by xAI to pursue these claims would be futile. xAI, part of Musk's SpaceX conglomerate, has not yet responded to requests for comment.