The ruling highlights tensions and legal complexities in the AI sector, with xAI, a SpaceX unit, declining to comment on the decision.

The docket notes the initial filing occurred in September 2025 and the final dismissal was announced on Monday, June 15, 2026.

A federal judge dismissed xAI’s trade secret lawsuit against OpenAI with prejudice, ruling that xAI failed to show OpenAI induced a former xAI engineer to disclose trade secrets.

The case focused on a recruitment presentation by Xuechen Li and alleged Grok 4 trade secrets, with OpenAI contending Li never worked for OpenAI and no secrets were obtained.

Filed last September, the suit claimed misappropriation of information by former xAI employees who had moved to OpenAI.

The ruling comes as Musk’s ventures face a broader AI rivalries, with SpaceX valued around $1.77 trillion and SpaceX stock rallying on the day.

The article includes standard risk disclosures about volatility and risk in trading instruments and cryptocurrencies.

The decision underscores ongoing rivalry between Musk’s xAI and OpenAI in the fast-moving generative AI space, as both push to enhance capabilities and market share.

Fusion Media’s copyright and privacy notices accompany the article, dating from 2007 to 2026.

The excerpt does not provide details on the specific court or jurisdiction involved.

This dismissal marks Musk’s second legal setback against OpenAI within four weeks, following a separate $150 billion lawsuit over OpenAI’s nonprofit-to-for-profit transition.

The broader sequence includes related actions between Musk’s entities and OpenAI, including a prior case where a jury found the statute of limitations had run out.