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Elon Musk loses another legal battle against Sam Altman. Musk's AI startup, xAI, filed a lawsuit accusing OpenAI of stealing trade secrets related to its Grok chatbot, but a federal judge dismissed the claim. This marks Musk's second loss to OpenAI in less than a month.
According to Reuters, US District Judge Rita Lin decided on Monday that xAI had not produced sufficient proof to support its assertions. The business accused Xuechen Li, a former senior engineer at xAI, of disclosing private information to OpenAI during her recruitment.
xAI claims that OpenAI allegedly sought information about Grok 4’s July 2025 launch. The lawsuit suggests that the ChatGPT developer was reportedly aware that its next version would not be able to match Grok 4's reasoning capabilities.
Judge Lin dismissed the complaint with prejudice, stating that it would be ‘futile’ to proceed, according to the report. Lin ruled that asking prospective seekers about their previous work is a regular part of the hiring process.
She stated, “To hold otherwise would potentially expose employers to liability any time they inquire about a candidate's past work.”
OpenAI praised the decision. The business added, “This baseless lawsuit was never anything more than yet another front in Mr. Musk's ongoing campaign of harassment.” OpenAI had issued the same statement following its earlier rejection in February.
Lawyers for OpenAI stated, “OpenAI does not need or want anyone's trade secrets, especially from xAI, which is failing in the market and losing talent.”
Also Read: Fired xAI Engineer Files Explosive Lawsuit Over Grok Risks
The defeat marks Musk's second failed attempt to sue OpenAI in just four weeks. On May 18, a federal jury ruled against him in a $150 billion case, where Musk accused OpenAI and CEO Sam Altman of foregoing the company's initial nonprofit objective for personal gain. Elon Musk's xAI continues to sue Li separately and denies any misconduct.
