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OpenAI Fends Off xAi’s Claims of Trade Secret Theft

A U.S. District Judge dismissed xAI's trade‑secret lawsuit against OpenAI, finding no evidence that OpenAI induced former employees to steal confidential information. The ruling emphasized that mere possession of trade secrets does not constitute misappropriation and that the plaintiff failed to link OpenAI to the alleged thefts. While the case remains open for amendment, xAI has until March 17 to file a revised complaint. The decision underscores the high evidentiary bar required to hold a hiring company liable for a new hire’s prior conduct.