xAI’s trade secrets lawsuit against OpenAI dismissed
In September, xAI sued rival OpenAI, accusing the company of stealing trade secrets by hiring away key employees.
After a key employee was poached by OpenAI, xAI filed its lawsuit in Northern California federal court, alleging that the company was after its “secret sauce” — the methods by which xAI was able to build data centers so quickly.
Today Judge Rita Lin dismissed the case, citing a lack of any direct accusations against OpenAI itself. In the order dismissing the case, Lin wrote:
“The sole defendant in this lawsuit is OpenAI, whom xAI accuses of misappropriating its trade secrets. But xAI does not point to any misconduct by OpenAI. Instead, it points to eight former xAI employees who left for OpenAI at around the same time.”
The judge said that xAI is allowed to file an amended complaint if it wants to pursue the case, but must do so by March 17.
Today Judge Rita Lin dismissed the case, citing a lack of any direct accusations against OpenAI itself. In the order dismissing the case, Lin wrote:
“The sole defendant in this lawsuit is OpenAI, whom xAI accuses of misappropriating its trade secrets. But xAI does not point to any misconduct by OpenAI. Instead, it points to eight former xAI employees who left for OpenAI at around the same time.”
The judge said that xAI is allowed to file an amended complaint if it wants to pursue the case, but must do so by March 17.
