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Musk's xAI loses US trade secret case against OpenAI

( June 15, 2026, 15:51 GMT | Official Statement) -- MLex Summary: Trade secret theft allegations against OpenAI by xAI have been dismissed with prejudice by a federal judge in San Francisco. US District Judge Rita F. Lin granted OpenAI's motion to dismiss xAI's claims without leave to amend, with Lin writing in the order that xAI failed to cure the shortcomings in its previously dismissed complaint, rejecting xAI's amended claims that OpenAI convinced a job candidate to steal xAI's trade secrets. "In essence, xAI equates asking a candidate about their prior work experience with encouraging the candidate to divulge trade secrets obtained during that prior work experience.  Without more, however, merely asking [the candidate] to discuss his previous work — a routine part of the hiring process — does not allow a plausible inference that OpenAI induced [the candidate] to reveal anything confidential or secret about that work," Lin wrote. See attached order....

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