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Intellectual Property

Jul. 15, 2026

OpenAI seeks $1M in fees, accuses xAI of bad-faith trade secrets suit

OpenAI argues Elon Musk's company filed the case in bad faith to discourage employees from joining its rival rather than to protect legitimate trade secrets.

Attorneys for OpenAI claim Elon Musk's xAI filed a baseless lawsuit in an attempt to prevent competition for talent, petitioning U.S. District Judge Rita F. Lin to award the defendants over $1 million in attorney fees.

In a motion filed Monday -- the same day xAI notified the court it was appealing Lin's June decision to dismiss the case with prejudice -- OpenAI's attorneys from Munger, Tolles & Olson LLP wrote that xAI filed the lawsuit for tactical purposes rathe...

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