US District Judge Rita Lin in San Francisco stated that xAI did not sufficiently demonstrate that OpenAI encouraged former xAI engineer Xuechen Li to misappropriate trade secrets, nor that Li shared any xAI secrets during a presentation while being recruited by OpenAI.
Lin dismissed the case with prejudice, indicating it would be “futile” for xAI to pursue further actions. She had previously dismissed an earlier iteration of the lawsuit in February.
Initially filed last September, the lawsuit charged that former xAI employees took confidential materials, including source code linked to the Grok chatbot, when they transitioned to positions at OpenAI.
The xAI venture is part of Musk’s broader enterprise encompassing SpaceX, which specializes in rockets and satellites alongside AI development.
Representatives for xAI did not provide immediate comments upon request.
Earlier, on May 18, a US jury ruled against Musk in his lawsuit against OpenAI, determining that the AI company was not liable to the world’s wealthiest individual for allegedly deviating from its foundational purpose of benefiting humanity.
In a unanimous decision, the jury in Oakland, California federal court concluded that Musk filed his case too late. They deliberated for under two hours.
The three-week trial was widely regarded as a pivotal moment for the future of OpenAI and artificial intelligence, particularly regarding its application and the distribution of benefits derived from it.
In his lawsuit, Musk accused OpenAI, Altman, and Brockman of manipulating him into investing $38 million, only to subsequently attach a for-profit operation to its original nonprofit mission and secure significant investments from Microsoft (MSFT.O), opens new tab, among others.
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(Edited by : Navneet Singh)
