A lawsuit filed by xAI, founded by Elon Musk, against OpenAI has been dismissed by US District Judge Rita F. Lin. The court found no evidence of misconduct by OpenAI, attributing the allegations to eight former employees who transitioned to OpenAI around the same time. Judge Lin highlighted that the accusations against these former employees included the potential theft of source code and retention of work chats post-departure, but noted a lack of direct allegations against OpenAI itself.
While xAI's claims involved various alleged infractions, including failed attempts to access confidential information, the judge pointed out that the lawsuit did not demonstrate OpenAI's involvement in any misconduct. OpenAI's motion for dismissal was approved with the option for xAI to amend its complaint. This gives xAI until March 17, 2026, to revise its allegations in light of the court's comments.
The ongoing legal battles between OpenAI and xAI indicate a heightened tension, with Musk also pursuing claims against OpenAI and Microsoft for violations related to OpenAI's nonprofit status, seeking damages ranging from $79 billion to $134 billion.