OpenAI Wins Trade Secrets Lawsuit Against xAI

US District Judge Rita F. Lin granted OpenAI’s motion to dismiss a trade secrets lawsuit filed by xAI, citing a lack of evidence linking the tech giant to the alleged misconduct. xAI had accused OpenAI of poaching and stealing its trade secrets, specifically alleging that two former employees stole its source code after joining the new company. However, in her ruling, Judge Lin noted that xAI failed to provide any direct evidence of wrongdoing by OpenAI, instead focusing on eight former xAI employees who left for OpenAI at roughly the same time. The court’s decision allows xAI to refile its claims with modifications.