Elon Musk Drops Again to OpenAI as Judge Dismisses xAI Trade Secret Lawsuit
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A federal judge has dismissed xAI's trade secret lawsuit against OpenAI, finding that Elon Musk's AI company—which he’s since folded into SpaceX—failed to show that the ChatGPT maker improperly obtained confidential information related to its Grok chatbot.
Key facts
SpaceX (SPCX) shares continued to soar Monday amid a broader market surge following the announcement of a ceasefire between the U.S. and Iran, rising nearly 20% by close to finish the day at $192.50
The decision is the second defeat that Musk—who co-founded OpenAI before departing in 2018—has suffered in his ongoing feud with OpenAI and CEO Sam Altman
Last month, a federal jury rejected Musk's $150 billion lawsuit alleging that OpenAI, Altman, and co-founder Greg Brockman abandoned the organization's founding nonprofit mission by shifting toward
The decision also comes as Musk became the world's first trillionaire following SpaceX's record-breaking IPO, which valued the company at around $1.77 trillion and cemented the rocket company's
Summary
A federal judge dismissed xAI's trade secret lawsuit against OpenAI without leave to amend. Judge Rita Lin found xAI failed to show OpenAI induced a former xAI engineer to disclose trade secrets. The ruling follows Musk's loss in a separate lawsuit accusing OpenAI of abandoning its nonprofit mission. In a court order on Monday, U.S. District Judge Rita Lin granted OpenAI's motion to dismiss without leave to amend, concluding that xAI failed to prove OpenAI encouraged a former xAI engineer to disclose trade secrets during the recruiting process.