A US District Judge dismissed xAI’s trade secret misappropriation lawsuit against OpenAI with prejudice, and OpenAI is now seeking to recoup more than $1 million in legal costs. The ruling, handed down on June 15, caps a case that xAI originally filed in September 2025. xAI had accused OpenAI of orchestrating a “coordinated campaign” of employee poaching and inducing a former employee to leak proprietary information related to Grok. Judge Rita Lin found that xAI failed to establish a direct link between OpenAI’s actions and any alleged theft. A jury had already rejected separate claims Musk filed against OpenAI in May 2026. Judge Lin had dismissed parts of the case once before in February 2026. Following the judgment with prejudice, OpenAI is positioned to pursue recovery of legal fees and costs exceeding $1 million.