Judge Dismisses Elon Musk's xAI Trade Secret Lawsuit Against OpenAI

A federal judge dismissed xAI's trade secret lawsuit against OpenAI, ruling that Elon Musk's company failed to prove OpenAI induced a former engineer to share confidential info. It's Musk's second legal loss to OpenAI in a month.

• Judge Rita Lin dismissed the case without leave to amend, saying xAI's allegations were insufficient.
• The ruling follows a separate loss in May where a jury rejected Musk's $150 billion lawsuit against OpenAI.
• The case centered on a former xAI engineer's presentation during recruitment by OpenAI.
• The judge noted that asking about past work during hiring is routine and not evidence of inducement.
• Musk co-founded OpenAI in 2015 before leaving in 2018 and has since been locked in legal battles with the company.

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Last updated 16 Jun 2026