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A federal judge has indicated that she may dismiss a lawsuit filed by Elon Musk‘s artificial intelligence start-up, xAI. The company had accused Sam Altman‘s rival firm, OpenAI, of stealing trade secrets to gain an unfair advantage in developing AI technology. US District Judge Rita Lin in San Francisco said her “tentative view” is to grant OpenAI’s motion to dismiss the case.
Legal battle
In September, Musk’s start-up sued OpenAI, accusing it of luring away xAI employees to gain confidential information about the AI chatbot Grok. In response, OpenAI accused Musk of waging a “campaign to harass a competitor with unfounded legal claims” because xAI couldn’t keep up with ChatGPT. The lawsuit is part of a larger legal feud between Musk and OpenAI over its transition into a for-profit entity.
Case assessment
In a four-page filing, Judge Lin said Musk’s start-up did not convincingly claim that OpenAI acquired or encouraged the theft of trade secrets. This was despite claims that some former xAI employees downloaded source code before leaving. The judge also found it implausible to infer from xAI’s complaint that OpenAI used these alleged trade secrets or former employees used them on the job after joining OpenAI.
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Competition concerns
Judge Lin also hinted at the possibility of dismissing an unfair competition claim. She said xAI’s poaching allegations “all focus on poaching in service of acquiring xAI’s trade secrets and do not identify any other reason why the hiring of those employees was anticompetitive.” The judge has asked both parties to address her preliminary thoughts at an upcoming hearing.
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Damages sought
In a separate case, Musk is seeking up to $134.5 billion in damages from OpenAI and Microsoft over their transition into for-profit companies. The jury selection for this case is set to begin on April 27. This ongoing legal battle highlights the intense competition and disputes within the AI industry as tech giants continue to develop advanced artificial intelligence systems.
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