Elon Musk testified in federal court that his startup xAI partly used OpenAI models to train the Grok chatbot. The admission occurred during cross-examination in Musk’s lawsuit alleging OpenAI abandoned its non-profit mission.
The training technique, known as distillation, involves a smaller AI model learning from a larger one. Musk claimed the practice is common throughout the artificial intelligence industry.
OpenAI’s terms of service explicitly prohibit distillation. This testimony could undermine Musk’s legal standing in the ongoing litigation.
Microsoft is a co-defendant in the case as a major OpenAI investor. The legal outcome could shift Microsoft’s AI strategy and its competitive position against Google.