OpenAI Prevails Over Musk's xAI in Trade Secrets Case

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A federal judge Monday dismissed a lawsuit by Elon Musk's artificial intelligence company xAI that accused rival Sam Altman's OpenAI of stealing its ‌trade secrets.

U.S. District Judge ​Rita Lin in San Francisco said xAI failed to show ⁠that OpenAI induced former xAI ​engineer Xuechen Li to misappropriate trade secrets ⁠or that Li disclosed xAI trade secrets in a presentation he delivered while ‌OpenAI was recruiting him.

Lin dismissed ​the case with ‌prejudice, saying it would be "futile" for ‌xAI to continue. She dismissed an earlier version of the lawsuit in February.

Originally ⁠filed last ‌September, the ⁠lawsuit claimed that former xAI employees took ⁠confidential ⁠information including source code related to the Grok chatbot ‌when they left for new jobs at OpenAI.

The xAI business is part ‌of ​Musk's rocket, ‌satellite and AI company SpaceX.

Lawyers for xAI did not immediately respond ​to requests for comment.

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