Elon Musk acknowledges xAI used OpenAI technology in court testimony

Tech billionaire Elon Musk admitted in a US court on April 30 that his artificial intelligence company, xAI, used technology developed by rival OpenAI to help build its own models.

The admission came during testimony in Musk’s lawsuit against OpenAI co-founder Sam Altman. The issue centered on a technique known as model distillation, where developers train new AI systems using outputs from existing models. The approach is commonly used by smaller companies to reduce development time and costs, dp reports. 

While being questioned under oath, Musk initially downplayed the issue, stating it was something that “generally all the AI companies do.” When pressed further by a lawyer representing Altman, he acknowledged its use more directly, responding: “Partially.”

The testimony is part of a broader legal dispute in which Musk accuses Altman and senior OpenAI executive Greg Brockman of betraying the organisation’s original mission. In the lawsuit, Musk argues they “stole a charity,” claiming that OpenAI, initially founded as a nonprofit focused on benefiting humanity, has shifted its value into a for-profit structure.

OpenAI disputes this characterisation, maintaining that control remains with its nonprofit entity.

Musk, who co-founded OpenAI but left its board in 2018 and ended his financial support in 2020, also faced questions about his own past involvement. During the proceedings, OpenAI’s legal team presented emails and messages suggesting Musk had attempted to gain control of the company’s for-profit arm in 2017 and used financial pressure by halting $5 million quarterly payments.

Musk said he began to question the intentions of Altman and Brockman at the time.

In his lawsuit, Musk is seeking to have both Altman and Brockman removed from their leadership roles and is calling for structural changes to OpenAI. The company, in turn, argues that the lawsuit is an attempt by Musk to weaken a major competitor to xAI.

The court proceedings were marked by tense exchanges. Over two days of questioning, Musk reacted sharply at times, accusing opposing counsel of trying to mislead him. US District Judge Yvonne Gonzalez Rogers intervened during the session, reminding Musk that he was not a lawyer after he challenged the nature of the questioning.

By Sabina Mammadli