xAI's lawsuit alleging that OpenAI stole trade secrets has been dismissed.
A judge has dismissed a lawsuit filed by Elon Musk's AI company xAI against OpenAI. The judge stated that xAI failed to present sufficient evidence.
Order on Motion to Dismiss – #110 in X.AI Corp. v. OpenAI, Inc. (ND Cal., 3:25-cv-08133) – CourtListener.com
US judge dismisses Musk's xAI trade secret lawsuit against OpenAI | Reuters
Judge tosses xAI claims that OpenAI stole trade secrets | Courthouse News Service
https://courthousenews.com/judge-tosses-xai-claims-that-openai-stole-trade-secrets/
The lawsuit was filed in September 2025, and the issue at stake was whether an xAI employee misused confidential information when they moved to OpenAI. xAI claimed that 'OpenAI instructed xAI employees to take confidential information outside the company.'
The lawsuit alleges that a former employee took source code and leaked confidential information about xAI during a job interview. However, because no evidence was presented that OpenAI recognized the former employee's statements as confidential, xAI's claim that 'OpenAI instructed the leakage of confidential information' was not accepted.
Federal District Judge Rita Lynn stated, 'In this case, OpenAI would only be in violation of the law if it knew that the former employee had leaked trade secrets, but OpenAI denies this. Simply asking someone to talk about their past work as is customary in the hiring process does not justify OpenAI instigating the leak of confidential information. Otherwise, employers could be held legally liable every time they inquire about a candidate's past work history.'
Regarding this lawsuit, Judge Lin dismissed it, stating that 'there was no evidence that OpenAI had induced the disclosure of confidential information.' Judge Lin also ruled that 'the case cannot be dismissed or refiled' because 'xAI has not rectified the shortcomings pointed out in the previous dismissal order,' and stated that continuing the lawsuit would be 'meaningless.'
OpenAI wins lawsuit filed by xAI alleging it 'unfairly poached employees to obtain trade secrets' - GIGAZINE
In calling for the lawsuit to be dismissed, OpenAI's lawyers wrote, 'OpenAI does not need or desire anyone's trade secrets, especially those of xAI, which is struggling in the market and experiencing a continuous brain drain.'
Related Posts:
in Note, Posted by log1p_kr