- A federal judge dismissed xAI‘s trade secret lawsuit against OpenAI without allowing it to be refiled.
- Judge Rita Lin found xAI did not prove OpenAI encouraged a former engineer to reveal confidential information about the Grok chatbot.
- This is Elon Musk‘s second recent legal defeat against OpenAI, following a separate lost lawsuit last month.
- SpaceX‘s shares soared nearly 20% to $192.50, pushing its valuation above $2.5 trillion according to market data.
A federal judge delivered another legal blow to Elon Musk on Monday by dismissing xAI‘s lawsuit against OpenAI. The trade secret case centered on whether the ChatGPT maker improperly obtained confidential information during its recruitment of an xAI engineer.
Judge Rita Lin’s court order granted OpenAI‘s motion to dismiss the case without leave to amend. She concluded that xAI failed to show OpenAI induced the engineer to disclose secrets during a routine hiring presentation.
Lin wrote that “merely asking Li to discuss his previous work—a routine part of the hiring process—does not allow a plausible inference that OpenAI induced Li to reveal anything confidential.” Consequently, she ruled that xAI provided insufficient allegations to support its claims.
This marks Musk’s second consecutive loss in his feud with OpenAI. Last month, a federal jury rejected his separate $150 billion lawsuit accusing the company of abandoning its nonprofit mission.
Meanwhile, Musk’s financial fortunes soared as SpaceX shares climbed nearly 20%. The stock closed at $192.50, giving the firm a staggering valuation above $2.5 trillion.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
