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California federal court dismisses xAI lawsuit accusing OpenAI of trade secret theft over hiring of former engineer, ruling claims lacked evidence

A federal court in California dismissed a lawsuit by Elon Musk's AI company xAI, which accused OpenAI of attempting to steal its trade secrets. The suit alleged OpenAI hired former xAI engineer Xuecheng Li to induce him to disclose confidential information about the Grok chatbot. Judge Rita Lin ruled xAI failed to provide sufficient evidence, calling the claims an equation of standard interview questions with trade secret theft. The dismissal is with prejudice, ending the case.

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