Judge: xAI can’t claim OpenAI stole trade secrets just by hiring ex-staffers

Elon Musk appears to be grasping at straws in a lawsuit accusing OpenAI of poaching eight xAI employees in an allegedly unlawful bid to access xAI trade secrets connected to its data centers and chatbot, Grok.

In a Tuesday order granting OpenAI’s motion to dismiss, US District Judge Rita F. Lin said that xAI failed to provide evidence of any misconduct from OpenAI.

Instead, xAI seemed fixated on a range of alleged conduct of former employees. But in assessing xAI’s claims, Lin said that xAI failed to show proof that OpenAI induced any of these employees to steal trade secrets “or that these former xAI employees used any stolen trade secrets once employed by OpenAI.”

Two employees admitted to stealing confidential information, with both downloading xAI’s source code and one improperly grabbing a supposedly sensitive recording from a Musk “All Hands” meeting. But the rest were either ...