Elon Musk's generative AI business xAI (also known as SpaceXAI) has appealed to the United States Court of Appeals for the Ninth Circuit over a twice-dismissed case against OpenAI.
Last year, xAI sued its rival, claiming the company stole data center trade secrets through targeted hires. The firm, now part of SpaceX, alleged that multiple workers downloaded or otherwise obtained confidential information and brought it to new roles at OpenAI.
xAI's Colossus data center – Michael Dell
The case was initially dismissed in February this year, but with the option for xAI to amend its complaint. In June, that amended complaint was also dismissed, this time without leave to amend.
US District Judge Rita Lin noted that, even if xAI could prove some departing employees accessed trade secrets, the company was unable to prove that OpenAI had knowledge of the information or used it.
