A US federal judge has dismissed xAI’s trade secrets lawsuit against OpenAI, resulting in SpaceX billionaire Elon Musk losing for the second time against OpenAI. Elon Musk’s artificial intelligence company xAI, which merged into SpaceX, failed to prove that the maker of ChatGPT improperly obtained trade secrets related to its Grok chatbot.
Elon Musk loses xAI trade confidentiality suit against OpenAI
US District Judge Rita Lin dismissed Elon Musk’s trade secrets lawsuit against OpenAI with prejudice, Reuters reported On June 16. It said xAI failed to show that OpenAI induced former xAI chief engineer Xuechen Li to disclose confidential information related to its Grok chat software.
Lane said it would be “absurd” to continue to claim that asking job candidates to discuss their past work is routine in the hiring process. “To say otherwise would expose employers to liability any time they inquire about a candidate’s prior work,” Judge Rita Lynn wrote.
“xAI did not adequately advance motivation in the prior complaint because it did not advance any nonconclusive allegations that would permit a reasonable inference that OpenAI told or encouraged former xAI employees to leak its confidential information,” the order said.
It rejected an earlier filing from Elon Musk’s xAI in February. The lawsuit was originally filed in September after several xAI employees left to work at OpenAI.
The decision marks the second defeat for Elon Musk, who co-founded OpenAI before leaving in 2018, in his ongoing feud with OpenAI and CEO Sam Altman.
Last month, a federal jury rejected Elon Musk’s $150 billion claim OpenAI lawsuit, Sam Altmanand co-founder Greg Brockman. The lawsuit alleged that the organization abandoned its non-profit mission and transformed into a commercial structure while deepening its relationship with Microsoft.
Musk faces a new case amid SpaceX’s stunning IPO
The decision comes against XAI Elon Musk became the world’s first trillionaire After SpaceX’s record-breaking IPO. The company became the sixth largest with a market capitalization of $2.519 trillion, according to CompaniesMarketCap data.
Furthermore, Elon Musk’s net worth has increased by $165 billion today, more than Bill Gates’ entire net worth. Elon is now worth $1.3 trillion.
SpaceX reached a market cap of $3 trillion today.
This means that Elon Musk has made more money in the past 24 hours than Warren Buffett has made in his entire life.
crazy.
– Anthony Pompliano 🌪 (@APompliano) June 16, 2026
As CoinGape previously reported, Elon Musk, xAI, and SpaceX are being sued By former engineer Devin Kim. The whistleblower claimed he was fired for raising safety concerns about the company’s leading chatbot, Grok.
SpaceX (SPCX) stock closed 19.60% higher at $192.50 on Monday amid a broader market rally with… Trump signed the US-Iran peace agreement. The stock also rose 11.57% to $214.86 in overnight trading.
However, Elon Musk-linked Dogecoin (DOGE) fell more than 2% to $0.0875 after the xAI trade secrets suit was dismissed. The lowest and highest price of the day were $0.08677 and $0.0907 respectively.
