A federal judge on Monday dismissed a lawsuit by Elon Musk’s artificial intelligence company, xAI, which had accused its main rival, Sam Altman’s OpenAI, of stealing trade secrets.
U.S. District Judge Rita Lin in San Francisco ruled that xAI failed to demonstrate that OpenAI induced former xAI engineer Xuechen Li to misappropriate proprietary information. Furthermore, the judge found no evidence that Li disclosed xAI's trade secrets during a presentation he delivered while OpenAI was actively recruiting him, News.Az reports, citing Reuters.
Judge Lin dismissed the case with prejudice, explicitly stating that it would be "futile" for xAI to continue pursuing the litigation. She had previously thrown out an earlier version of the lawsuit in February.
The legal battle dates back to last September when xAI originally filed the suit. The company claimed that a group of its former employees took highly confidential information, including internal source code related to its Grok chatbot, when they defected to take new jobs at OpenAI.
The xAI startup operates as part of SpaceX, Musk's aerospace, satellite, and artificial intelligence corporation. Lawyers representing xAI did not immediately respond to requests for comment following Monday's ruling.
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