Elon Musk confirms xAI used OpenAI’s models to train Grok
In federal court, Musk admits xAI used OpenAI's models to train Grok. Model distillation just became a legal battleground.

Why it matters
A high-profile admission in court that a rival AI startup used a competitor's models for training raises urgent questions about IP protection, model licensing, and what constitutes legitimate vs. predatory distillation in the AI industry—setting potential precedent for how courts will adjudicate model training disputes.
The key facts
4 to knowElon Musk testified in federal court (California) that xAI used OpenAI models for training
Model distillation at center of dispute—common practice but legally ambiguous when applied to competitors' models
Raises IP/licensing questions for AI startups relying on larger models for knowledge transfer
Potential legal precedent for industry on boundaries of acceptable model training practices
Go to the source
The Verge AItheverge.com
Publisher excerpt: In a federal courtroom in California on Thursday, Elon Musk testified that his own AI startup, xAI, has used OpenAI's models to improve its own. The matter at question is model distillation, a common industry practice by which one larger AI model acts as a "teacher" of sorts to pass on knowledge to…

