A federal judge in San Francisco dismisses a trade secret lawsuit filed by Elon Musk’s AI company, xAI, against Sam Altman’s OpenAI. The case accuses OpenAI of taking confidential information related to chatbots, including xAI’s Grok chatbot. US District Judge Rita Lin rules that xAI does not meet the legal requirements to show that OpenAI induced a former xAI senior engineer, Xuechen Li, to disclose confidential information. The judge also finds that xAI fails to establish that OpenAI engineers knew Li might have shared such information. The dismissal is with prejudice, meaning xAI cannot refile the same claims in the same form. The decision resolves the dispute at the court level addressed in the lawsuit’s dismissal stage, without an adjudication on the underlying merits of whether any trade secrets were misused. The parties’ broader positions and any potential responses beyond the dismissed claims are not covered in the provided excerpts.