"while xAI may state misappropriation claims against a couple of its former employees, it does not state a plausible misappropriation claim against OpenAI. Lin's order will likely not be the end of the litigation, as she is allowing xAI to amend its complaint to address the current deficiencies."
"xAI failed to show proof that OpenAI induced any of these employees to steal trade secrets or that these former xAI employees used any stolen trade secrets once employed by OpenAI. Two employees admitted to stealing confidential information, with both downloading xAI's source code and one improperly grabbing a supposedly sensitive recording from a Musk All Hands meeting."
"Lin called out particularly weak arguments that xAI's complaint acknowledged that one employee who OpenAI poached never received access to confidential information allegedly sought after exiting xAI, and two employees were lumped into the complaint who simply left xAI for OpenAI."
US District Judge Rita F. Lin granted OpenAI's motion to dismiss xAI's lawsuit alleging OpenAI unlawfully poached eight employees to access xAI trade secrets related to data centers and Grok. The judge found xAI failed to provide evidence of OpenAI misconduct. While two employees admitted stealing confidential information including source code and a recording, xAI could not demonstrate OpenAI induced the theft or that former employees used stolen secrets at OpenAI. The judge noted weak arguments, including one employee who never accessed the allegedly sought confidential information and two employees simply leaving for OpenAI. Lin concluded xAI failed to state a plausible misappropriation claim against OpenAI, though she allowed xAI to amend its complaint.
Read at Ars Technica
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