Judge Dismisses Elon Musk’s Lawsuit Against OpenAI, Citing Allegations of “Ongoing Campaign of Harassment”

A federal judge in California has dismissed a lawsuit by Elon Musk’s AI company xAI against OpenAI, the creator of ChatGPT. US District Judge Rita Lin found that xAI failed to demonstrate any misconduct by OpenAI, which is led by Sam Altman. The lawsuit, initiated in September 2025, alleged that former xAI employees, now at OpenAI, took source code and confidential information related to xAI’s Grok chatbot. Judge Lin stated that xAI did not provide evidence that OpenAI induced these employees to steal trade secrets. While xAI may pursue claims against individual ex-employees, the judge emphasized there was no viable misappropriation claim against OpenAI itself. Following the ruling, OpenAI expressed relief, labeling the lawsuit as part of Musk’s “ongoing campaign of harassment.” The legal disputes continue, with Musk seeking $134.5 billion in damages in a separate case against OpenAI and Microsoft, with jury selection set for April 2026.

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