Elon Musk has acknowledged in court that his artificial intelligence company xAI may have used OpenAI systems to help train Grok, in a disclosure that throws fresh light on how leading developers are building and refining their models. Speaking at a federal hearing in California on 28 April, Mr Musk said xAI had "partially" used distillation techniques involving OpenAI models, according to TechCrunch and WIRED.

Distillation is a widely used method in which the outputs or behaviour of a large model are used to teach a smaller one, allowing developers to lower costs while preserving some of the original system's capabilities. Mr Musk said the practice is common across the industry, while also stressing that xAI remains much smaller than rivals such as OpenAI, Anthropic and Google, according to the court testimony reported by TechCrunch.

The admission comes against the backdrop of Mr Musk's lawsuit against OpenAI, chief executive Sam Altman and co-founder Greg Brockman, in which he argues the company drifted away from its original non-profit mission as it moved towards a commercial structure. The dispute has become one of the most closely watched legal fights in the AI sector, with both sides contesting not only corporate purpose but also the boundaries of model training and access to proprietary systems.

According to reporting by GeekWire, the litigation has also widened into questions about Mr Musk's overlapping roles as both plaintiff and business partner, with OpenAI and Microsoft seeking to use xAI's commercial ties as part of their defence. Separately, other legal battles around the company continue to mount: a judge has blocked xAI's effort to compel OpenAI to hand over source code in a separate case, while OpenAI has won dismissal of a trade-secret claim brought by xAI. Meanwhile, xAI is facing a class-action lawsuit over alleged deepfake abuse involving Grok, underscoring the growing legal and ethical scrutiny surrounding Musk's AI venture.

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Source: Noah Wire Services