OpenAI Beats X.AI Trade Secrets Lawsuit Over Ex-Staff, Code (2)

OpenAI Inc. convinced a federal judge to throw out X.AI Corp.'s lawsuit accusing the AI giant of misappropriating its trade secrets by poaching multiple employees and encouraging them to steal confidential information.

Elon Musk’s X.AI “does not point to any misconduct by OpenAI,” wrote Judge Rita F. Lin in the Tuesday order dismissing the lawsuit with a chance for X.AI to amend. “Instead, it points to eight former xAI employees who left for OpenAI at around the same time.”

This lawsuit and X.AI’s separate trade secrets action against a former engineer who intended to join OpenAI marked the first major ...