Elon Musk Gets Dealt Blow By Biden-Appointed Judge Days After Becoming Trillionaire
A legal case involving Elon Musk’s AI company xAI was dismissed by a San Francisco federal judge, Rita Lin, who found that OpenAI did not provide sufficient evidence that xAI had stolen trade secrets from former engineer Xuechen Li. The lawsuit claimed that openai sought confidential facts about xAIS chatbot Grok, specifically its upcoming Grok 4 model, alleging that OpenAI tried to gain an unfair advantage in the AI race. However, the court ruled that Li’s discussions with OpenAI did not amount to an attempt to steal trade secrets.This decision marks Musk’s second courtroom loss against OpenAI within a month.Musk, who recently became the world’s first trillionaire following the IPO of SpaceX, also accuses OpenAI of abandoning its nonprofit roots in pursuit of profit, but OpenAI denies any wrongdoing and states it has never possessed xAI’s secrets.The case was dismissed with prejudice, indicating that further legal action on this matter is unlikely.
A judge dismissed a lawsuit from Elon Musk’s artificial intelligence company, xAI, accusing a rival of trying to steal trading secrets — three days after Musk became the world’s first trillionaire.
Musk’s xAI is the developer of the chatbot Grok while OpenAI developed and runs ChatGPT.
Musk’s AI company argued that its competitor sought information about the newest model of Grok, the Washington Examiner reported. Lin dismissed the suit’s argument arguing that the discussions did not amount to an attempt to obtain trade secrets.
Lawyers for OpenAI wrote, “OpenAI does not need or want anyone’s trade secrets, especially not from xAI, which is failing in the marketplace and hemorrhaging talent,” according to the Economic Times.
OpenAI has said Li never worked for them, and they never acquired xAI secrets. Musk’s AI company is suing xAI separately, the outlet reported.
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