Elon Musk Admits xAI ‘Partly Distilled’ OpenAI Models: What Do Prediction Markets Say About The Lawsuit?

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Elon Musk took the stand Thursday, accusing OpenAI of stealing a charity before he admitted that his own AI startup, xAI, had “partly” distilled OpenAI’s models to build Grok.

The Tesla Inc. (NASDAQ:TSLA) CEO is suing OpenAI for $150 billion in damages, alleging the start-up betrayed its founding nonprofit mission.

Under cross-examination from OpenAI lead counsel William Savitt on day three of the federal trial in Oakland, Musk was asked whether xAI had distilled OpenAI’s models.

“Generally AI companies distill other AI companies,” Musk replied. Pressed for a yes or no, he answered “partly.”

Distillation, the practice of using one AI model to train another, is banned by OpenAI’s terms of service. Bloomberg has separately reported that xAI engineers have leaned on Anthropic models for coding.

Musk vs Scam Altman

The animosity between the two former co-founders has been hard to miss. Musk has taken to calling Sam Altman “Scam Altman” on X, and is seeking his removal from the OpenAI board alongside a reversal of …

Full story available on Benzinga.com

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