xAI's Lawsuit Accusing OpenAI Of Stealing Trade Secrets Has Been Thrown Out
The federal judge’s final decision is to dismiss the case with prejudice.
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Elon Musk and xAI have again failed to prove that OpenAI was trying to persuade one of its former employees to steal trade secrets, according to a federal judge's ruling on Monday. As first reported by Reuters, US District Judge Rita F. Lin ruled in favor of OpenAI by dismissing the lawsuit with prejudice, resulting in a final judgement on the case that doesn't allow xAI to refile the lawsuit.
The lawsuit began in September 2025 when xAI first accused OpenAI of stealing trade secrets, which came a month after Musk's company directly sued one of its former employees for the same reason. OpenAI countered by arguing that there wasn't a connection between itself and the "alleged misappropriation of xAI's former employees." The federal judge dismissed the casein February, leaving xAI with the...
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