Monday's decision is Elon Musk's second legal loss against OpenAI in four weeks.

Screens display the logo of Grok, a generative artificial intelligence chatbot developed by xAI, the American company specializing in artificial intelligence and it's founder South African businessman Elon Musk in Toulouse, France on Jan. 13, 2025. (AFP/Lionel Bonaventure)

A federal judge dismissed a lawsuit on Monday by Elon Musk's artificial intelligence company xAI that accused rival Sam Altman's OpenAI of stealing trade secrets for chatbots.US District Judge Rita Lin in San Francisco said xAI failed to show that OpenAI induced former xAI senior engineer Xuechen Li to divulge confidential information related to its Grok chatbot, or that OpenAI engineers knew Li might have disclosed any.

Lin dismissed the lawsuit with prejudice, saying it would be "futile" to continue. She dismissed an earlier version in February. The lawsuit originally filed in September focused on broader alleged misappropriation of confidential information, including source code, when xAI employees left for jobs at OpenAI.

Monday's decision is Musk's second legal loss against OpenAI in four weeks.