Court Dismisses Musk's Lawsuit Against OpenAI Due to the Absurdity of the Claims – WSJ,
On June 16, a California federal court dismissed a lawsuit filed by Elon Musk’s company xAI against OpenAI regarding the alleged theft of trade secrets. The court also barred the case from being refiled, calling such a move unfounded.
Judge Rita Lin ruled that xAI failed to prove that OpenAI intentionally poached a former xAI engineer to have him share confidential information about the Grok chatbot. The lawsuit was dismissed with language that effectively puts an end to the case: the judge noted the “futility” of any further legal action with the same claims.
xAI filed a lawsuit against OpenAI last year, accusing its competitor of stealing trade secrets and poaching employees. Musk has long been waging a public war against OpenAI—a company he once co-founded, only to later leave and become one of its most vocal critics.
While the court was dismissing xAI’s case, SpaceX announced a $60 billion deal to acquire Anysphere—the parent company of Cursor, an AI assistant for programmers—Cursor competes with Anthropic’s Claude Code and OpenAI’s Codex.
The news sent SpaceX shares up 4.8%. At the close of trading, the company surpassed Amazon’s market capitalization for the first time and became the fifth-most-valuable public company in the world. Trading volume in SpaceX stock options on their first day of trading broke Meta’s record, set in 2012.
According to the WSJ, the acquisition of Cursor should help SpaceX attract corporate clients who have so far avoided the company’s own chatbot—the very same Grok at the center of the legal scandal with OpenAI.
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