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US judge dismisses Elon Musk’s xAI trade secret lawsuit against OpenAI

A federal judge dismissed Elon Musk's xAI trade secret lawsuit against OpenAI, ruling that xAI failed to prove OpenAI induced former engineer Xuechen Li to steal confidential information related to the Grok chatbot. The dismissal marks Musk's second legal loss against OpenAI in four weeks.

read1 min views1 publishedJun 15, 2026

A San Francisco judge said xAI failed to show that OpenAI induced former xAI engineer Xuechen Li to steal trade secrets

A federal judge on Monday dismissed a lawsuit by Elon Musk’s artificial intelligence company xAI that accused rival Sam Altman’s OpenAI of stealing trade secrets for chatbots.

OpenAIinduced former xAI senior engineer Xuechen Li, a Chinese national, to divulge confidential information related to its Grok chatbot, or that OpenAI engineers knew Li might have disclosed any.

xAIto continue. She dismissed an earlier version of the lawsuit in February.

The lawsuit originally filed in September focused on broader alleged misappropriation of confidential information, including source code, by xAI employees who left for jobs at OpenAI.

Musk’ssecond legal loss against OpenAI in four weeks. On May 18, a federal jury ruled against the world’s richest person in his US$150 billion lawsuit accusing OpenAI and Altman of “stealing a charity” by betraying the company’s original mission as a charity to enrich themselves.

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