OpenAI Executive Tears Into Elon Musk's xAI Following Court Dismissal of Trade Secret Case

Jason Kwon, the Chief Strategy Officer of OpenAI, recently expressed his thoughts on the dismissal of a lawsuit filed by xAI against OpenAI. The lawsuit alleged that OpenAI had orchestrated a scheme to poach eight xAI employees in 2025 to steal its trade secrets and source code.

Judge Dismisses Lawsuit Due to Lack of Evidence

The lawsuit was dismissed by a U.S. district judge, who stated that xAI failed to provide sufficient evidence to prove any misconduct by OpenAI. Kwon suggested that the lawsuit was a reaction to Elon Musk’s comment about having a “0% chance of success” when he left OpenAI.

Kwon’s Statement

In a post, Kwon wrote:

“This entire frivolous claim is just an extension of his ‘0% chance of success’ dig when he left OpenAI. The fact that we don’t care about his trade secrets doesn’t register. Other companies talking to people who don’t want to work at xAI anymore must once again be all about him. In a sense, I guess it was, just not in the way the dismissed complaint assumed. Most of them left him anyway.”

OpenAI’s Response

OpenAI welcomed the court’s decision, calling the lawsuit “baseless” and part of Musk’s “ongoing campaign of harassment.”

This lawsuit is part of a broader legal battle between Musk and OpenAI, a company he co-founded. In a separate case, xAI CEO Elon Musk has sued OpenAI and CEO Sam Altman, alleging the company betrayed its non-profit mission, seeking $134 billion in damages, with a jury trial expected in April.

xAI’s Reorganization

Meanwhile, xAI has announced a company reorganization to improve execution speed, which unfortunately required parting ways with some people, following a wave of co-founder departures.