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OpenAI wins dismissal of trade secret lawsuit by Musk's xAI

The judge said xAI failed to show OpenAI induced a former engineer to reveal confidential information during recruitment.

  • On Monday, District Judge Rita Lin dismissed a lawsuit by Elon Musk's artificial intelligence company that accused rival OpenAI of stealing trade secrets for chatbots, ruling it would be "futile" to continue.
  • Originally filed last September, the lawsuit alleged former employees misappropriated confidential information, including source code related to the Grok chatbot, when they left for new jobs at OpenAI.
  • Judge Lin ruled that the plaintiff failed to prove OpenAI induced former engineer Xuechen to misappropriate trade secrets or that he disclosed confidential information during recruitment.
  • This ruling marks the second legal setback for Musk against OpenAI in four weeks, following an earlier dismissal of this case in February.
  • On May 18, a federal jury ruled against Musk in a separate $150 billion lawsuit, which accused Sam Altman of "stealing a charity" by betraying the company's original mission.
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The Times of Northwest IndianaThe Times of Northwest Indiana
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Judge dismisses Musk's lawsuit against OpenAI

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

·Cherokee County, United States
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Market Screener broke the news in Annecy, France on Monday, June 15, 2026.
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