A U.S. federal judge has dismissed a lawsuit by Elon Musk's AI company, xAI, against OpenAI, alleging theft of trade secrets. Judge Rita Lin of the U.S. District Court for the Southern District of California ruled that xAI failed to demonstrate that OpenAI induced former xAI engineer Xuechen Li to misappropriate trade secrets or that he disclosed them during his recruitment at OpenAI. The judge deemed further pursuit of the case "futile," following a previous dismissal of the lawsuit in February.