Judge dismisses xAI lawsuit against OpenAI

A U.S. federal judge has dismissed a lawsuit filed by billionaire entrepreneur Elon Musk's artificial intelligence company xAI, which accused AI firm OpenAI of stealing its trade secrets.

According to The Wall Street Journal, federal judge Rita Lin in California issued her ruling in the case, which xAI filed in September 2025, CE Report quotes Anadolu Agency.

Judge Lin stated that xAI failed to provide evidence supporting its claim that engineer Li Xueqin, a former employee, had been recruited by rival company OpenAI in order to obtain confidential information and that xAI's trade secrets had been misappropriated.

Lin noted that xAI had effectively equated asking a job candidate about previous work experience with the disclosure of trade secrets during the hiring process. She emphasized that there was no evidence that Li had shared information about his former employer with OpenAI during his interview.

As a result, the judge ordered the dismissal of xAI's lawsuit.

The engineer hired by OpenAI was reportedly among the first developers involved in creating xAI's AI chatbot, Grok.

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