A U.S. court has dismissed xAI's trade secret lawsuit against OpenAI, with no option for re-filing. Federal Judge Rita Lin stated that Elon Musk's company failed to prove that the startup encouraged former xAI engineer Xuechen Li to disclose confidential information about the Grok chatbot.
The dispute centered on Li's presentation during his interview, where he discussed his previous work, including reinforcement learning systems and Grok 4's post-training. The judge noted that discussing past experience during hiring does not equate to encouraging the transfer of trade secrets.
This marks Elon Musk's second defeat in his legal battle with OpenAI in less than a month: in May, a jury dismissed his separate $150 billion lawsuit.