"Notably absent are allegations about the conduct of OpenAI itself. xAI didn't include any information that directly accuses OpenAI of making those employees steal its trade secrets. It also didn't include allegations that those former employees used any stolen trade secrets after they were already working for OpenAI."
"Lin said that xAI accused two of its former employees of stealing its source code before leaving at a time when they were already speaking to an OpenAI recruiter. However, the company didn't say if the recruiter told those former employees to do so."
"OpenAI's motion for dismissal was granted with leave to amend, so the lawsuit may not be completely over just yet. That means xAI can still file an amended complaint addressing what the judge wrote in her decision until March 17, 2026."
US District Judge Rita F. Lin dismissed xAI's lawsuit accusing OpenAI of stealing trade secrets. The judge determined the complaint lacked allegations of direct misconduct by OpenAI, instead attributing all alleged wrongdoing to eight former xAI employees who joined OpenAI. The complaint detailed various employee actions including source code theft, retention of work chats, refusal to provide certifications, and unauthorized access attempts to xAI systems. However, xAI provided no evidence that OpenAI directed these actions or that stolen information was subsequently used. The dismissal included leave to amend, allowing xAI to file a revised complaint addressing the judge's concerns by March 17, 2026. This dispute represents one of several ongoing legal conflicts between the two companies.
Read at Engadget
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