{"id":2616894,"date":"2026-06-21T11:54:00","date_gmt":"2026-06-21T15:54:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-gets-dealt-blow-by-biden-appointed-judge-days-after-becoming-trillionaire\/"},"modified":"2026-06-21T11:54:56","modified_gmt":"2026-06-21T15:54:56","slug":"elon-musk-gets-dealt-blow-by-biden-appointed-judge-days-after-becoming-trillionaire","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-gets-dealt-blow-by-biden-appointed-judge-days-after-becoming-trillionaire\/","title":{"rendered":"Elon Musk Gets Dealt Blow By Biden-Appointed Judge Days After Becoming Trillionaire"},"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\">24<\/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%2Felon-musk-gets-dealt-blow-by-biden-appointed-judge-days-after-becoming-trillionaire%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=2616894&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 legal case involving Elon Musk\u2019s 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 <a href=\"https:\/\/amzn.to\/3YuVZYV\" >openai sought confidential facts<\/a> 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&#8217;s discussions with OpenAI did not amount to an attempt to steal trade secrets.This decision marks Musk\u2019s second courtroom loss against OpenAI within a month.Musk, who recently became the world\u2019s 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\u2019s secrets.The case was dismissed with prejudice, indicating that further legal action on this matter is unlikely.  <\/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\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<section> \t\t\t\t<script>console.log(\"ad slot (AC1)\")<\/script><script>console.log(\"ad slot (IC1)\")<\/script><script>console.log(\"ad slot (IC2)\")<\/script><script>console.log(\"ad slot (IC3)\")<\/script><script>console.log(\"ad slot (IC4)\")<\/script><\/p>\n<p>A judge dismissed a lawsuit from Elon Musk\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/commerce-secretarys-husband-is-top-executive-at-tech-firm-funded-by-chinese-government\/\" title=\"Commerce Secretary...s Husband Is Top Executive at Tech Firm Funded by Chinese Government\">artificial intelligence company<\/a>, xAI, accusing a rival of trying to steal trading secrets \u2014 three days after Musk became the world\u2019s first trillionaire.<\/p>\n<div>San Francisco-based federal judge Rita Lin, an appointee of former President Joe Biden, dismissed the case Monday after ruling that OpenAI failed to demonstrate that it <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/texas-health-committee-wont-review-maternal-deaths-in-2022-2023-washington-examiner\/\" title=\"Texas health committee won&#039;t review maternal deaths in 2022, 2023 - Washington Examiner\">obtained confidential information<\/a> from former xAI engineer Xuechen Li. The dismissal marks the new trillionaire\u2019s <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cand.456862\/gov.uscourts.cand.456862.110.0_1.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">second<\/a> courtroom loss against OpenAI in less than a month.<\/div>\n<div><\/div>\n<div>The lawsuit brought against OpenAI stated that in the desire to win the artificial intelligence race to build the best AI model, OpenAI crossed the line by stealing trading secrets from Li, who had admitted to stealing the company\u2019s entire code base, <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cand.456862\/gov.uscourts.cand.456862.1.0.pdf\">according<\/a> to the lawsuit. Its complaint revolved around a presentation that Li made to OpenAI who was at the time trying to hire him.<\/div>\n<div>\n<p>Musk\u2019s xAI is the developer of the chatbot Grok while OpenAI developed and runs ChatGPT.<\/p>\n<\/p><\/div>\n<div>OpenAI and xAI each did not immediately respond to the Daily Caller News Foundation\u2019s request for comment.<\/div>\n<div>\n<p>Musk\u2019s AI company argued that its competitor sought information about the newest model of Grok, the Washington Examiner <a href=\"https:\/\/www.msn.com\/en-us\/technology\/artificial-intelligence\/judge-dismisses-xai-lawsuit-accusing-openai-of-stealing-trade-secrets\/ar-AA25IUCp?ocid=BingNewsVerp\" target=\"_blank\" rel=\"noopener\">reported<\/a>. Lin dismissed the suit\u2019s argument arguing that the discussions did not amount to an attempt to obtain trade secrets.<\/p>\n<\/p><\/div>\n<div>The trillionaire claimed that OpenAI wanted secrets about the release of Grok 4 because an upcoming update to ChatGPT would not be able to compete with Grok\u2019s capabilities, the Economic Times <a href=\"https:\/\/www.msn.com\/en-in\/news\/world\/us-judge-dismisses-elon-musks-xai-trade-secret-lawsuit-against-openai\/ar-AA25Jw5N?ocid=BingNewsSerp\">reported<\/a>.<\/div>\n<div><\/div>\n<div>Lin dismissed the case with prejudice, meaning saying it would be \u201cfutile\u201d to continue, according to the outlet.<\/div>\n<div><\/div>\n<div>Musk\u2019s xAI is a part of his rocket and satellite company SpaceX.<\/div>\n<div><\/div>\n<div>Elon Musk filed SpaceX for initial public offering (IPO) back in May and launched its first s Friday \u2014 leading to him becoming the world\u2019s first trillionaire that day.<\/div>\n<div>\n<p>Lawyers for OpenAI wrote<strong>,<\/strong> \u201cOpenAI does not need or want anyone\u2019s trade secrets, especially not from xAI, which is failing in the marketplace and hemorrhaging talent,\u201d according to the Economic Times.<\/p>\n<\/p><\/div>\n<div>\n<p>OpenAI has said Li never worked for them, and they never acquired xAI secrets. Musk\u2019s AI company is suing xAI separately<strong>, <\/strong>the outlet reported.<\/p>\n<\/p><\/div>\n<div>The dismissal comes after a federal judge blocked Musk\u2019s first lawsuit accusing OpenAI and Sam Altman of abandoning their nonprofit mission in the pursuit of profit because Musk took too long to open the suit. Musk helped launch OpenAI in 2015.<\/div>\n<div class=\"disclaimer\">\n<p>All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/union-membership-plummets-to-record-low\/\" title=\"Union Membership Plummets to Record Low\">legitimate news publisher<\/a> that can provide a large audience. All republished articles must include our logo, our reporter\u2019s byline and their DCNF affiliation. 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