️ US judge dismisses xAI trade secrets lawsuit against OpenAI

A federal judge in California dismissed xAI’s lawsuit accusing OpenAI of stealing trade secrets. Judge Rita Lin said xAI can refile but has not alleged misconduct by OpenAI itself.

The suit claimed former xAI employees took Grok source code and confidential information when moving to OpenAI. The court said xAI did not present facts showing OpenAI induced theft or used any stolen material.

The case is part of a broader legal fight between Elon Musk and OpenAI, where Musk is seeking up to $134.5B in damages over OpenAI’s shift to a for profit structure.

For now, the trade secrets claim is off the table.

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