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US judge dismisses Elon Musk’s xAI trade secret lawsuit against OpenAI

A federal judge on Monday dismissed a lawsuit by Elon Musk’s artificial intelligence company, xAI, that accused rival Sam Altman’s OpenAI of stealing ‌trade secrets…

By Samantha Johnson / June 15, 2026

A federal judge on Monday dismissed a lawsuit by Elon Musk’s artificial intelligence company, xAI, that accused rival Sam Altman’s OpenAI of stealing ‌trade secrets for chatbots.

US District Judge Rita Lin in San Francisco, California, said xAI failed to show that OpenAI induced former xAI senior engineer Xuechen Li, a Chinese national, to divulge confidential information related to its Grok chatbot, or that OpenAI engineers knew Li might have disclosed any.
Lin ‌dismissed the case with prejudice, saying ⁠it ⁠would be “futile” for xAI to continue.

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She dismissed ‌an earlier version of the lawsuit in February.

The lawsuit originally filed ⁠in September focused on broader alleged misappropriation of confidential information, including source code, by xAI employees who left for ‌jobs at OpenAI.

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Monday’s decision is Musk’s second legal loss against OpenAI in four weeks.

On May 18, a federal jury ruled against the world’s richest person in his US$150 billion lawsuit ‌accusing OpenAI and Altman of “stealing a charity” by betraying the company’s original mission as a ⁠charity to enrich ⁠themselves.

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