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Reading: US choose dismisses xAI trade-secrets lawsuit in opposition to rival OpenAI for now
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Money

US choose dismisses xAI trade-secrets lawsuit in opposition to rival OpenAI for now

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Last updated: February 26, 2026 6:39 am
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US choose dismisses xAI trade-secrets lawsuit in opposition to rival OpenAI for now
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Feb 24 (Reuters) – A federal choose in California on Tuesday dismissed a lawsuit from Elon Musk’s synthetic intelligence startup xAI that accused rival Sam Altman’s OpenAI ‌of stealing its commerce secrets and techniques.

U.S. District Decide Rita Lin in San Francisco ‌mentioned that xAI may refile its case, however for now has did not allege that OpenAI dedicated any ​misconduct.

The lawsuit, filed in September, claimed that former xAI staff took supply code associated to its Grok chatbot and different confidential data with them after they left for brand spanking new jobs at OpenAI.

“Notably absent are allegations in regards to the conduct of OpenAI itself,” Lin mentioned. “xAI doesn’t allege ‌any information indicating that OpenAI ⁠induced xAI’s former staff to steal xAI’s commerce secrets and techniques or that these former xAI staff used any stolen commerce secrets and techniques as soon as employed ⁠by OpenAI.”

Lin had signaled in a January opinion that she would possible rule for OpenAI. She gave xAI till March 17 to file an amended criticism.

xAI has individually sued a former engineer, ​Xuechen Li, ​for allegedly taking commerce secrets and techniques to the ChatGPT ​maker. Li was blocked in that ‌case from sharing xAI’s know-how with OpenAI, although OpenAI has mentioned that Li by no means labored for the corporate and that it by no means acquired or used any of xAI’s secrets and techniques.

Spokespeople and attorneys for xAI didn’t instantly reply to a request for touch upon the Tuesday resolution.

“We welcome the courtroom’s resolution,” OpenAI mentioned in an announcement. “This baseless lawsuit was ‌by no means something greater than one more entrance in ​Mr. Musk’s ongoing marketing campaign of harassment.”

The lawsuit is a component ​of a broader authorized battle between ​Musk and Microsoft-backed OpenAI, which he co-founded and can be suing ‌over its conversion to a for-profit firm.

Musk, ​the world’s richest ‍individual, is ​in search of as a lot as $134.5 billion in damages from OpenAI and Microsoft in that case. Jury choice is scheduled for April 27.

OpenAI mentioned in a courtroom submitting that ​the trade-secrets case was half ‌of a “marketing campaign to harass a competitor with unfounded authorized claims” as a result of Grok ​couldn’t sustain with ChatGPT.

(Reporting by Blake Brittain in Washington; Enhancing by ​David Bario, Chizu Nomiyama and Cynthia Osterman)

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