A federal judge in San Francisco has dismissed the lawsuit filed by Elon Musk’s artificial intelligence company, xAI, against rival Sam Altman's OpenAI.

U.S. District Judge Rita Lin ruled on June 15 that xAI failed to prove OpenAI induced former engineer Xuechen Li to misappropriate trade secrets. The case was dismissed with prejudice, meaning it cannot be refiled.

The original lawsuit, filed in September and amended in February, alleged that former xAI employees took confidential source code related to the Grok chatbot upon leaving for OpenAI.