Court Dismisses xAI Trade Secrets Case Against OpenAI
A U.S. District Court judge has dismissed xAI’s December 2025 lawsuit accusing OpenAI of poaching employees to steal trade secrets, ruling the complaint failed to present plausible claims directly against OpenAI. The case was dismissed with leave to amend, giving xAI 30 days to refile.
Judge Rita F. Lin of the Northern District of California found that the allegations centered on former employees’ actions without sufficient evidence that OpenAI induced or knowingly benefited from any trade secret misappropriation.
The ruling adds to the growing legal tensions between Elon Musk’s xAI and OpenAI, as competition intensifies in the generative AI race and disputes over talent, governance, and strategic direction continue to play out in court.
