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OpenAI counters Musk’s trade secret lawsuit, demanding xAI cover millions in legal fees after claiming it filed first
Bloomberg reports that OpenAI has petitioned a judge to dismiss xAI’s trade secret theft lawsuit as baseless, demanding that Elon Musk’s company pay more than $1 million in legal costs. This motion follows xAI’s announcement that it plans to appeal its repeatedly dismissed claims, signaling a prolonged legal battle.
OpenAI secured two dismissals, arguing that xAI lacked any substantive proof.
In court filings, OpenAI’s legal team argued that xAI filed suit before gathering evidence, compelling OpenAI to expend significant resources defending against unsupported trade secret allegations. A San Francisco federal judge initially dismissed the case in February, noting that xAI failed to demonstrate any misconduct by OpenAI, despite eight former xAI employees joining OpenAI around the same period.
xAI subsequently requested a six-month extension to bolster its case, which was denied. After filing an amended complaint in March, Judge Lin Ping dismissed the lawsuit again in June, ruling that xAI’s new allegations attempted to frame standard hiring practices—such as asking new hires about their prior work—as malicious inducement to steal trade secrets.
While Apple’s legal action has just begun, OpenAI faces a critical juncture ahead of its IPO.
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Bloomberg reports that OpenAI has petitioned a judge to dismiss xAI’s trade secret theft lawsuit as baseless, demanding that Elon Musk’s company pay more than $1 million in legal costs. This motion follows xAI’s announcement that it plans to appeal its repeatedly dismissed claims, signaling a prolonged legal battle.
OpenAI secured two dismissals, arguing that xAI lacked any substantive proof.
In court filings, OpenAI’s legal team argued that xAI filed suit before gathering evidence, compelling OpenAI to expend significant resources defending against unsupported trade secret allegations. A San Francisco federal judge initially dismissed the case in February, noting that xAI failed to demonstrate any misconduct by OpenAI, despite eight former xAI employees joining OpenAI around the same period.
xAI subsequently requested a six-month extension to bolster its case, which was denied. After filing an amended complaint in March, Judge Lin Ping dismissed the lawsuit again in June, ruling that xAI’s new allegations attempted to frame standard hiring practices—such as asking new hires about their prior work—as malicious inducement to steal trade secrets.
While Apple’s legal action has just begun, OpenAI faces a critical juncture ahead of its IPO.
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Elon Musk, Sam Altman, and Dario Amodei, three titans of the technology sector, are advancing toward initial public offerings for their respective ventures. With SpaceX, OpenAI, and Anthropic—three industry behemoths nearing trillion-dollar valuation
Swedish AI Startup Lovable Eyes $13.2 Billion Valuation After Major Funding Round
As AI-driven coding tools gain traction, Swedish startup Lovable has secured a major funding round. The company aims to raise $3 billion, potentially boosting its valuation to $13.2 billion—double the $6.6 billion recorded last December. Menlo Ventur
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2026 Latest Best AI Study Tools for Homework and Exam Prep! XIX.AI curates a top-rated list of powerful, game-changing tools that help students boost productivity, streamline homework completion, and ace exams through real-world tests. Get a free vs paid comparison, detailed rankings, and must-try options to unlock your AI edge. Explore now!
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