Musk has no proof OpenAI stole xAI trade secrets, judge rules, tossing lawsuit
Ars Technica
by
Ashley Belanger
February 25, 2026
AI-Generated Deep Dive Summary
Elon Musk's lawsuit alleging that OpenAI poached eight xAI employees to gain access to trade secrets related to its data centers and chatbot technology, Grok, has been dismissed by U.S. District Judge Rita F. Lin. In her ruling, Lin found no evidence of misconduct or theft by OpenAI, emphasizing that xAI failed to prove that the former employees misused any stolen information while at OpenAI. The judge noted that xAI's focus on the actions of ex-employees, rather than demonstrating direct wrongdoing by OpenAI, weakened their case.
The lawsuit had accused OpenAI of inducing former xAI workers to share sensitive trade secrets, including details about Grok and xAI's data center operations. However, Lin determined that xAI lacked concrete evidence linking OpenAI to any illegal activity or the use of stolen information. The court also highlighted that xAI's claims appeared to rely heavily on twisting the words of former employees to fit their narrative, which ultimately failed to sway the judge.
This case raises important questions about employee mobility in the tech industry and the challenges startups face when competing with larger companies like OpenAI. While trade secret disputes are common in the AI sector, where intellectual
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Originally published on Ars Technica on 2/25/2026