Overview
- U.S. District Judge Rita Lin in San Francisco granted OpenAI’s motion to dismiss, tossing the case without prejudice.
- xAI has until March 17, 2026 to file an amended complaint, and it cannot add new claims or parties without permission.
- The suit focused on at least eight employees who left xAI for OpenAI, including allegations that an early xAI engineer uploaded source code while in contact with an OpenAI recruiter.
- Lin said the filings did not assert that OpenAI directed any theft or that former xAI staff used stolen material after joining OpenAI.
- OpenAI said it welcomed the ruling and labeled the case baseless, as this dispute continues alongside Musk’s separate for‑profit case set for jury selection in late April.