Federal court dismisses Elon Musk’s xAI claim that OpenAI induced theft of confidential Grok chatbot data.
A federal judge dismissed xAI’s trade secret lawsuit against OpenAI, ruling the company failed to prove OpenAI encouraged a former engineer to disclose confidential information. The case centered on allegations OpenAI improperly obtained data related to xAI’s Grok chatbot during recruitment efforts.
The decision marks the second legal setback for Musk in disputes with OpenAI. Last month, a jury rejected his $150 billion lawsuit accusing OpenAI of abandoning its nonprofit mission by shifting to a commercial model and partnering with Microsoft. Judge Rita Lin’s order stated xAI provided no credible evidence of inducement.
No immediate market reaction was reported following the ruling.