Elon Musk admits xAI trained Grok using OpenAI models in court testimony
Musk describes distillation as a general industry practice while testifying that xAI engaged in the technique to replicate larger model capabilities.
Elon Musk has admitted in federal court proceedings that xAI utilised model distillation techniques to train its Grok model using OpenAI's models. The testimony occurred during a trial in California where Musk is suing OpenAI, CEO Sam Altman, and Greg Brockman, alleging a breach of the company's original nonprofit mission due to its shift to a for-profit structure.
When directly questioned whether xAI specifically engaged in this practice, Musk answered "Partly", asserting that distillation is a general practice among AI companies. This admission marks a significant development in the competitive landscape, as the technique allows smaller firms to create capable models at lower costs by querying larger, publicly accessible models.
The revelation highlights a notable irony within the sector. Frontier labs such as OpenAI, Anthropic, and Google have recently focused their anti-distillation efforts on Chinese firms creating open-weight models. However, tech workers have long suspected that US labs were also using these techniques against each other, a suspicion now confirmed by Musk's comments on the stand.
Musk characterised distillation as a method that undermines the competitive advantage built by giants who have invested heavily in proprietary compute infrastructure. He noted that xAI, which started in 2023 years after OpenAI, would naturally try to learn from the then-leader in the field to avoid falling behind competitors.
During the proceedings, Musk also provided a ranking of global AI providers, placing Anthropic first, followed by OpenAI, Google, and Chinese open-source models. He described xAI as a much smaller entity with only a few hundred employees, contrasting it with the established giants it seeks to emulate.
It remains unclear whether distillation is explicitly illegal under current law, though it may violate the terms of service set by companies for their products. OpenAI did not respond to requests for comment regarding Musk's admission at the time of reporting, leaving the legal implications of the admission to be determined by the court.
