Home / Technology / Judge May Nix Musk's AI Trade Secret Lawsuit
Judge May Nix Musk's AI Trade Secret Lawsuit
31 Jan
Summary
- Judge signaled potential dismissal of xAI's lawsuit against OpenAI.
- xAI accused OpenAI of stealing trade secrets for AI development.
- Musk's startup also separately suing OpenAI and Microsoft.
A federal judge in San Francisco has signaled a potential dismissal of the lawsuit filed by Elon Musk's AI startup, xAI, against rival OpenAI. U.S. District Judge Rita Lin indicated her tentative view is to grant OpenAI's motion to dismiss the claims, with arguments scheduled for February 3. xAI had accused OpenAI of stealing trade secrets and hiring away former xAI employees to gain an unfair advantage in AI development.
However, Judge Lin's preliminary reasoning suggests xAI did not plausibly allege that OpenAI acquired or encouraged the theft of trade secrets. She also found it implausible to infer that OpenAI used xAI's alleged trade secrets. The judge further questioned xAI's unfair competition claim, stating it focused solely on poaching for trade secrets. The lawsuit is one aspect of a broader legal conflict, as Musk is also suing OpenAI and Microsoft over alleged conversion to a for-profit entity, seeking substantial damages.
