Musk admits xAI distills OpenAI models during trial testimony
elon musk testified he provided $38 million to openai, claiming he was deceived into funding a for-profit entity now worth $800 billion. he seeks to remove ceo sam altman. musk admitted his own firm, xai, uses openai's models to train grok, raising questions about intellectual property and competitive tactics in the ai race.
Elon Musk took the stand in Oakland federal court, testifying that Sam Altman and Greg Brockman tricked him into funding OpenAI with $38 million in donations intended for a nonprofit. Musk is suing to unwind OpenAI's for-profit structure, potentially blocking a $1 trillion IPO. During cross-examination, OpenAI's lawyer highlighted Musk's competitive motives, revealing that Musk's xAI uses OpenAI models to train its own Grok chatbot, despite public criticism of OpenAI's closed-source stance.