{"id":2614376,"date":"2026-06-15T18:07:02","date_gmt":"2026-06-15T22:07:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/musk-lawsuit-accusing-openai-of-stealing-trade-secrets-dismissed\/"},"modified":"2026-06-15T18:09:14","modified_gmt":"2026-06-15T22:09:14","slug":"musk-lawsuit-accusing-openai-of-stealing-trade-secrets-dismissed","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/musk-lawsuit-accusing-openai-of-stealing-trade-secrets-dismissed\/","title":{"rendered":"Musk lawsuit accusing OpenAI of stealing trade secrets dismissed"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmusk-lawsuit-accusing-openai-of-stealing-trade-secrets-dismissed%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2614376&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A federal judge has dismissed a lawsuit filed by Elon Musk\u2019s AI company,xAI,against OpenAI,accusing the latter of <a href=\"https:\/\/amzn.to\/3YuVZYV\" >stealing trade secrets related<\/a> to its grok chatbot. The court ruled that xAI failed to prove that OpenAI improperly obtained confidential information from a former xAI engineer during recruitment. The judge also dismissed the case with prejudice, meaning it cannot be refiled, citing that further amendments would be futile. This marks Musk\u2019s second recent legal loss against openai within a month, following a separate case where a jury rejected Musk\u2019s claims related to openai\u2019s shift from a nonprofit to a profit-driven institution. The rulings highlight ongoing legal and competitive struggles between Musk and OpenAI\u2019s CEO,Sam Altman,amid the broader AI industry rivalry.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\">A federal judge on Monday dismissed a lawsuit brought by <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/elon-musk\/\">Elon Musk\u2019s<\/a> <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/commerce-secretarys-husband-is-top-executive-at-tech-firm-funded-by-chinese-government\/\" title=\"Commerce Secretary\u2019s Husband Is Top Executive at Tech Firm Funded by Chinese Government\">artificial intelligence company<\/a>, xAI, accusing rival <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/openai\/\">OpenAI<\/a> of stealing trade secrets related to its Grok chatbot, marking the billionaire\u2019s second courtroom loss against OpenAI in less than a month.<\/p>\n<p class=\"wp-block-paragraph\">U.S. District Judge Rita Lin, an appointee of former President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/joe-biden\/\">Joe Biden<\/a>, ruled that xAI failed to demonstrate that OpenAI improperly obtained confidential information from former xAI engineer Xuechen Li during a recruitment process, according to a series of <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cand.456862\/gov.uscourts.cand.456862.110.0_1.pdf\">court filings<\/a> added to the docket Monday.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/world\/4609470\/south-korea-starbucks-tank-day\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>South Korea\u2019s Starbucks to close for staff history lesson after \u2018Tank Day\u2019 reusable cup campaign<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4607328\/doj-greenlights-warner-bros-paramount-merger\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>DOJ greenlights Warner Bros. merger with Paramount<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4606438\/progressives-should-thank-tech-billionaires-creating-millions-jobs-joe-concha\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Progressives should thank tech billionaires for creating jobs: Joe Concha<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<figure class=\"wp-block-image size-large\"><figcaption class=\"wp-element-caption\">Collage of Tesla CEO Elon Musk and OpenAI CEO Sam Altman. (AP Photos)<\/figcaption><\/figure>\n<p class=\"wp-block-paragraph\">Lin dismissed the lawsuit with prejudice, meaning the claims cannot be refiled, concluding that further amendments would be \u201cfutile.\u201d<\/p>\n<div class=\"wex-ad-wrap\" style=\"min-height:5px;\"><span class=\"wex-ad-label\" style=\"display:none;\">Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-15\" data-wex-ad=\"art-dsk-inart-1\"><\/div>\n<\/div>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">The lawsuit, originally <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cand.456862\/gov.uscourts.cand.456862.1.0.pdf\">filed in September<\/a>, accused OpenAI of misappropriating confidential information from departing xAI employees. After Lin dismissed an earlier version of the complaint in February, xAI narrowed its allegations to focus on a presentation Li gave while OpenAI was attempting to recruit him.<\/p>\n<p class=\"wp-block-paragraph\">According to xAI, OpenAI sought information about the development of Grok 4, arguing that OpenAI\u2019s forthcoming ChatGPT updates were struggling to compete with Grok\u2019s capabilities in advanced reasoning and reinforcement learning techniques.<\/p>\n<p class=\"wp-block-paragraph\">Lin rejected that argument, writing that discussions about prior work are a routine part of recruiting and do not, by themselves, suggest an effort to obtain trade secrets.<\/p>\n<div class=\"wex-ad-wrap\" style=\"min-height:5px;\"><span class=\"wex-ad-label\" style=\"display:none;\">Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-16\" data-wex-ad=\"art-dsk-inart-2\"><\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cTo hold otherwise would potentially expose employers to liability any time they inquire about a candidate\u2019s past work,\u201d the judge wrote.<\/p>\n<p class=\"wp-block-paragraph\">The court also found no evidence that OpenAI induced Li to disclose confidential information or that OpenAI employees knew any proprietary information may have been shared.<\/p>\n<p class=\"wp-block-paragraph\">OpenAI maintained throughout the litigation that Li never worked for the company and that it never obtained xAI trade secrets.<\/p>\n<div class=\"wex-ad-wrap\" style=\"min-height:5px;\"><span class=\"wex-ad-label\" style=\"display:none;\">Advertisement<\/span><\/p>\n<div id=\"div-gpt-ad-3182201-17\" data-wex-ad=\"art-dsk-inart-3\"><\/div>\n<\/div>\n<p class=\"wp-block-paragraph\">\u201cThis baseless lawsuit was never anything more than yet another front in Mr. Musk\u2019s ongoing campaign of harassment,\u201d OpenAI said in a statement Monday.<\/p>\n<p class=\"wp-block-paragraph\">The <em>Washington Examiner <\/em>contacted an attorney for xAI.<\/p>\n<p class=\"wp-block-paragraph\">The ruling adds to a string of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/race-based-bailouts-in-covid-stimulus-bill-face-legal-setbacks\/\" title=\"Race-Based Bailouts In COVID Stimulus Bill Face Legal Setbacks\">legal setbacks<\/a> for Musk in his increasingly bitter feud with OpenAI CEO Sam Altman.<\/p>\n<p class=\"wp-block-paragraph\">Last month, a federal jury rejected Musk\u2019s blockbuster lawsuit accusing Altman and OpenAI of abandoning the organization\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/breaking-jury-sides-against-musk-in-openai-lawsuit\/\" title=\"Breaking: Jury Sides Against ... in ... ...\">original nonprofit mission<\/a> in pursuit of profits. Jurors <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/business\/4572894\/elon-musk-loses-case-against-sam-altman-openai-mission\/\">unanimously concluded<\/a> Musk\u2019s claims were filed too late and fell outside the applicable statute of limitations.<\/p>\n<p class=\"wp-block-paragraph\">That case centered on OpenAI\u2019s transition from a nonprofit research organization into a for-profit <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/artificial-intelligence\/\" type=\"post_tag\" id=\"1658\">artificial intelligence<\/a> company. Musk, who co-founded OpenAI before departing in 2018, argued that Altman had betrayed the company\u2019s founding principles by prioritizing commercial success.<\/p>\n<p class=\"wp-block-paragraph\">The jury\u2019s verdict preserved Altman\u2019s leadership of OpenAI and allowed the company to continue operating under its current corporate structure.<\/p>\n<p class=\"wp-block-paragraph\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/finance-and-economy\/4606254\/spacex-ipo-elon-musk-trillionaire\/\">ELON MUSK BECOMES FIRST TRILLIONAIRE AFTER SPACEX\u2019S BLOCKBUSTER IPO<\/a><\/strong><\/p>\n<p class=\"wp-block-paragraph\">Musk, whose AI startup xAI competes directly with OpenAI\u2019s ChatGPT platform through its Grok chatbot, sought hundreds of billions of dollars in damages and attempted to force sweeping changes to OpenAI\u2019s governance structure in that case.<\/p>\n<p class=\"wp-block-paragraph\">The latest dismissal in a separate high-profile lawsuit further underscores the legal challenges facing Musk as his rivalry with Altman increasingly plays out both in court and in the rapidly expanding AI marketplace.<\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Judge dismisses Musk\u2019s xAI trade secret suit vs. OpenAI<\/p>\n","protected":false},"author":2633,"featured_media":2614377,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/04\/image-collage-uv2s3m1th-1777305580992-e1777426557922.jpg?1781544416&amp;w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[4928,4585,4250,20164,81226],"class_list":["post-2614376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-dismissed","tag-lawsuit","tag-musk","tag-openai","tag-trade-secrets"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/04\/image-collage-uv2s3m1th-1777305580992-e1777426557922.jpg?1781544416&amp;w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2614376","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2633"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2614376"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2614376\/revisions"}],"predecessor-version":[{"id":2614380,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2614376\/revisions\/2614380"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2614377"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2614376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2614376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2614376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}