While testifying in federal court, Elon Musk suggested that his AI lab, xAI, may have utilized models from OpenAI during its development process. This statement was made while Musk was being cross-examined by an attorney representing OpenAI, amidst an ongoing legal dispute between Musk and the company.
The key exchange during the proceedings involved Musk confirming the concept of "distillation," which is when one AI model is trained using the capabilities of another, typically more sophisticated model. The conversation unfolded as follows:
OpenAI Lawyer William Savitt: Do you know what distillation is?
Musk: It means to use one AI model to train another AI model.
Savitt: Has xAI done that with OpenAI?
Musk: Generally, all the AI companies do that.
Savitt: So that’s a yes.
Musk: Partly.
Distillation is known for making AI models more efficient and cost-effective, while retaining a significant level of performance compared to their larger counterparts.
Savitt went on to question Musk about the specifics of xAI’s development. He asked if any OpenAI technology had been employed in xAI’s creation. Musk responded that it is common practice to utilize other AI systems to validate one’s own work.
This incident comes as OpenAI has taken measures to protect its models from being appropriated by rival companies, including a firm in China known as DeepSeek. In a recent memo, OpenAI expressed its commitment to maintaining a competitive landscape where U.S. innovation is safeguarded from foreign appropriation.
In the current highly competitive AI environment, collaborations and shared resources among AI companies have become less common. For example, Anthropic recently revoked OpenAI’s access to its coding models, citing violations of terms of service. Similarly, Anthropic has barred xAI from using its AI models for coding tasks.
Throughout his testimony, Musk faced intense scrutiny regarding his past attempts to exert control over OpenAI and his motivations for establishing xAI as a competitor. Correspondence from 2017 was presented to highlight Musk’s alleged strategy to pressure OpenAI by withholding financial support and recruiting key researchers away from the organization.
