Categories: The Verge

OpenAI defeats xAI’s trade secrets lawsuit

OpenAI won a victory Tuesday in one of its legal battles with xAI, which involved allegations of poaching and theft of trade secrets.

The former company’s motion to dismiss the lawsuit was granted on Tuesday with leave to amend, meaning xAI has the option to refile with modified claims. In the ruling, US District Judge Rita F. Lin wrote that “xAI does not point to any misconduct by OpenAI” in its current claims. “Instead, it points to eight former xAI employees who left for OpenAI at around the same time,” with no indication that OpenAI directed their actions while leaving xAI.

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xAI alleges that two former employees “stole its source code …

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