U.S. Judge Dismisses xAI Trade Secrets Lawsuit Against OpenAI

U.S. Judge Dismisses xAI Trade Secrets 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, saying it would be “futile” to allow the case to proceed.
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Odaily reported that a U.S. federal judge on Monday dismissed a lawsuit filed by Elon Musk’s artificial intelligence company xAI against its competitor OpenAI. The lawsuit accused OpenAI of stealing trade secrets, but the court did not accept xAI’s claims as sufficient to move the case forward.

Judge Rita Lin of the U.S. District Court for the Northern District of California in San Francisco said xAI failed to show that OpenAI induced former xAI engineer Xuechen Li to misappropriate trade secrets. The judge also said xAI failed to show that Li disclosed xAI trade secrets during presentations made while OpenAI was recruiting him.

In the ruling, Rita Lin said allowing xAI to continue the lawsuit would be “futile.” This was not the first time the case had been rejected by the court: Lin had previously dismissed an earlier version of the lawsuit in February this year. The cited source for the report was Jinshi.

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