Munger, Tolles & Olson Files Motion to Dismiss on behalf of OpenAI in Trade Secrets Case Against xAI 

On October 2, 2025, Munger, Tolles & Olson filed a motion to dismiss and answer on behalf of OpenAI in response to litigation brought by xAI.  The Complaint alleges misappropriation of xAI’s trade secrets and unfair competition.  xAI filed the case, X.AI Corp. et al v. OpenAI, Inc. et al (N.D. Cal. No. 3:25-cv-08133-RFL), on September 24, 2025.  OpenAI’s answer contains a summary of their defense and can be found here.  OpenAI’s motion to dismiss argues that the Complaint fails to allege that OpenAI received or used any alleged xAI trade secrets and is based on the inevitable disclosure doctrine, which is not recognized in California, and that the intentional interference and unfair competition claims are preempted by the California Uniform Trade Secrets Act.  The motion is set for argument before Judge Rita Lin on November 18, 2025.