Insight
xAI v. OpenAI and Coordinated Departures
The June 15 dismissal required allegations connecting the hiring company to the asserted trade-secret misconduct.
Law checked through
On June 15, 2026, the Northern District of California dismissed the amended xAI trade-secret complaint against OpenAI without further leave to amend. The order, ECF 110, found insufficient allegations connecting OpenAI itself to the asserted inducement, acquisition or disclosure. An interview question about a candidate’s prior work did not, without the missing facts, establish encouragement to disclose a trade secret. This is a pleading ruling on the amended complaint, not a finding that employee transfers are always lawful.
For Texas employers, distinguish what a departing employee did from what the hiring company instructed, acquired or used. Give new hires a written prohibition on bringing former-employer materials, including AI histories and prompt libraries, and preserve relevant onboarding records. The opinion is a California district-court ruling and does not establish a Texas inevitable-disclosure rule.