In a significant ruling, US District Judge Rita F. Lin dismissed a lawsuit filed by xAI against OpenAI, asserting that xAI failed to demonstrate any misconduct by OpenAI. The lawsuit, initiated in September, accused eight former xAI employees of misappropriating source code for the Grok chatbot when they transitioned to OpenAI. However, Judge Lin highlighted that xAI’s complaint lacked factual allegations indicating that OpenAI had encouraged or benefited from the theft of trade secrets. She noted, “Notably absent are allegations about the conduct of OpenAI itself.” The judge allowed xAI to amend its complaint by March 17, which opens the door for further legal actions in this ongoing rivalry. This case is part of a larger legal framework where Elon Musk, an early supporter of OpenAI, filed separate lawsuits against both Microsoft and OpenAI, claiming breaches of OpenAI’s nonprofit mission and engaging in disputes with Apple as well.
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