Wednesday, February 25, 2026

OpenAI Prevails Over XAI in Ongoing Trade Secrets Lawsuit

A California federal judge recently dismissed a lawsuit from Elon Musk’s xAI Corp, which accused OpenAI Inc. of poaching employees to obtain trade secrets. The judge highlighted that the lawsuit lacked sufficient evidence of misconduct, referring to the claims as “conclusory” and “notably absent” of concrete allegations. However, she granted xAI the opportunity to submit a revised complaint to strengthen its case. For those interested in staying updated on critical legal matters, Law360 offers a comprehensive subscription service featuring over 200 articles daily across various topics, including expert analysis, daily newsletters, a mobile app, and real-time alerts. Subscribers gain access to an extensive archive of more than 450,000 articles and can enhance their legal research and awareness with advanced search capabilities. Experience the benefits of Law360 with a free 7-day trial to stay informed about fast-evolving legal issues and trends.

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