US judge dismisses Musk’s xAI trade secret lawsuit against OpenAI

A U.S. federal judge has dismissed a trade secret lawsuit filed by Elon Musk's xAI against OpenAI. The lawsuit, originally filed in September, accused OpenAI of stealing confidential information for its chatbots. U.S. District Judge Rita Lin in San Francisco ruled that xAI failed to demonstrate that OpenAI induced former xAI engineer Xuechen Li to disclose trade secrets or that OpenAI engineers were aware of any such disclosures. The judge dismissed the lawsuit with prejudice, deeming further proceedings futile, and had previously dismissed an earlier version in February. This marks xAI's second legal setback against OpenAI in recent weeks, following a separate lawsuit Musk filed regarding the company's original mission.

A federal judge in San Francisco has dismissed a lawsuit filed by Elon Musk's xAI against OpenAI. xAI had accused OpenAI of stealing trade secrets related to chatbots. US District Judge Rita Lin ruled that xAI did not provide sufficient evidence to demonstrate that OpenAI induced former xAI engineer Xuechen Li to disclose confidential information about xAI's Grok chatbot. The judge also found no proof that OpenAI engineers were aware Li might have shared such information. The case was dismissed with prejudice, meaning xAI cannot refile the lawsuit.