Elon Musk indicated during a court trial that xAI may have used OpenAI’s models to train its own AI systems. This admission highlights the competitive tensions within the AI industry.
The trial began on April 30, 2026, in California. Musk is suing OpenAI and its co-founders, Sam Altman and Greg Brockman. He claims that they violated an agreement by transitioning from a non-profit to a for-profit model.
Musk co-founded OpenAI in 2015 with the intention of creating AI for the benefit of humanity. He left the organization in 2018 after an unsuccessful attempt to take control.
During his testimony, Musk described using distillation as a standard practice in the AI industry. He stated that his company xAI has partly utilized OpenAI models to develop its Grok chatbot.
Musk is seeking $134 billion in damages, aimed at redirecting funds back to OpenAI’s non-profit arm. His lawyer noted that Musk would have accepted a for-profit structure if it supported non-profit initiatives.
The trial is expected to last three weeks and will scrutinize OpenAI’s governance practices. Musk expressed concerns about the potential catastrophic outcomes of AI development.
Musk previously donated $38 million to OpenAI between 2016 and 2020 across 60 contributions. His current stance reflects significant discontent with how OpenAI has evolved since his departure.
As the trial progresses, it could reshape perceptions of ethical practices within the rapidly evolving AI landscape. The implications of Musk’s claims may resonate beyond this courtroom battle.