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OpenAI Scores Legal Victory After US Judge Dismisses Musk’s xAI Lawsuit

OpenAI Scores Legal Victory After US Judge Dismisses Musk’s xAI Lawsuit

A US federal judge dismissed Elon Musk’s artificial intelligence company xAI’s lawsuit accusing rival Sam Altman’s OpenAI of stealing chatbot trade secrets. US District Judge Rita Lin in San Francisco ruled on Monday that xAI failed to demonstrate that OpenAI coerced former xAI senior engineer Xuechen Li into disclosing sensitive information about its Grok chatbot, or that OpenAI programmers were aware Li might have done so.

Lin dismissed the action with prejudice, stating that it would be “futile” to proceed. She rejected a previous version in February. The first case, filed in September, centered on larger allegations of xAI workers misappropriating confidential material, including source code, when they left for jobs at OpenAI.

On May 18, a federal jury found against Musk, the world’s richest person, in his $150 billion lawsuit accusing OpenAI and Altman of “stealing a charity” by abandoning the company’s initial charitable objective to enrich themselves.

Musk’s rocket, satellite, and AI company SpaceX owns and operates xAI. Attorneys for xAI did not immediately reply to calls for comment. Similar demands were not responded to immediately by OpenAI or its lawyers.

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