OpenAI asks court to make Elon Musk’s xAI pay over Rs 9.5 crore after lawsuit dismissal
Follow UsOpenAI claims xAI filed the lawsuit without sufficient evidence and wasted legal resources.
xAI plans to appeal despite the case being dismissed twice by a US judge.
The legal battle comes as OpenAI also faces a separate trade secrets lawsuit from Apple.
OpenAI has asked a US court to order Elon Musk’s AI startup xAI to pay over $1 million in legal expenses after a trade secrets lawsuit filed against the ChatGPT maker was dismissed. This comes after xAI informed the court that it plans to appeal the dismissal of its claims. In the latest filing, OpenAI stated that xAI initiated the lawsuit without sufficient evidence and forced the company to spend big resources defending itself. The company claimed that the case does not have the factual support from the outset and should not have been brought before the court.
SurveyThe dispute started when xAI accused OpenAI of recruiting its employees and encouraging them to bring confidential information related to the company. However, US District Judge Rita Lin had earlier dismissed the case, stating that xAI failed to provide enough evidence to support allegations of trade secret theft.
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After the initial dismissal in February, xAI filed an amended complaint in March, adding fresh allegations. The revised filing claimed that OpenAI encouraged a newly hired employee to discuss work done at the previous company. In June, Judge Lin rejected the amended complaint as well, describing the accusations as an attempt to portray ordinary hiring practices as evidence of wrongdoing. Even after the second dismissal, xAI has now moved to challenge the ruling before a higher court.
The case comes at a time when OpenAI is facing yet another high profile legal challenge. Last week, Apple filed a separate lawsuit accusing the AI company of encouraging employees to share confidential information related to unreleased products and components. Apple is seeking damages and wants OpenAI to destroy any proprietary material it may have obtained.
Responding to Apple’s allegations, OpenAI said it has no interest in obtaining competitors’ trade secrets and remains focused on developing its own AI technologies.
