US District Judge Rita Lin in San Francisco said xAI failed to show that OpenAI induced former xAI engineer Xuechen Li to misappropriate trade secrets or that Li disclosed xAI trade secrets in a presentation he delivered while OpenAI was recruiting him.
Lin dismissed the case with prejudice, saying it would be ”futile” for xAI to continue. She dismissed an earlier version of the lawsuit in February.
Originally filed last September, the lawsuit claimed that former xAI employees took confidential information including source code related to the Grok chatbot when they left for new jobs at OpenAI.
The xAI business is part of Musk’s rocket, satellite and AI company SpaceX.
Lawyers for xAI did not immediately respond to requests for comment.
Earlier, on May 18 a US jury had ruled against Elon Musk in his lawsuit against OpenAI, finding the artificial intelligence company not liable to the world’s richest person for having allegedly strayed from its original mission to benefit humanity.
In a unanimous verdict, the jury in Oakland, California, federal court said Musk brought his case too late. The jury deliberated less than two hours.
The three-week trial had widely been seen as a critical moment for the future of OpenAI and artificial intelligence generally, both in how it should be used and who should benefit from it.
In his lawsuit, Musk had accused OpenAI, Altman and Brockman of manipulating him into giving $38 million, then going behind his back by attaching a for-profit business to its original nonprofit and accepting tens of billions of dollars from Microsoft (MSFT.O), opens new tab and other investors.
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(Edited by : Navneet Singh)
