US Judge Dismisses xAI Trade Secret Lawsuit Against OpenAI

US Judge Dismisses xAI Trade Secret Lawsuit Against OpenAI

N
News Editor
2026-06-15 16:02:51
A federal judge in San Francisco dismissed xAI’s lawsuit accusing OpenAI of stealing trade secrets, finding that xAI failed to show OpenAI induced a former engineer to misuse or disclose its confidential information.
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Odaily reported that a US federal judge on Monday dismissed a lawsuit filed by Elon Musk’s artificial intelligence company xAI against its rival OpenAI. The lawsuit accused OpenAI of stealing trade secrets and centered on former xAI engineer Xuechen Li, including claims tied to presentations made during OpenAI’s recruitment process.

Judge Rita Lin of the US District Court for the Northern District of California in San Francisco said xAI had not shown that OpenAI induced Xuechen Li to misappropriate xAI trade secrets. The court also found that xAI had not demonstrated that Li disclosed xAI’s trade secrets in presentations made while OpenAI was recruiting him. According to the judge, allowing xAI to continue the case would be “futile.”

The case had already faced an earlier setback. Rita Lin previously dismissed an earlier version of the lawsuit in February this year. The latest ruling means xAI’s trade secret allegations against OpenAI again failed to gain support from the court. The report cited Jinshi as the source.

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