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Elon Musk testifies that xAI trained Grok on OpenAI models

TechCrunch AI · Apr 30, 2026, 6:03 PM

Key takeaways

  • Open AI and Anthropic have been on the warpath lately against third-party efforts to train new AI models by prompting their publicly-accessible chatbots and APIs, a process known as distillation.
  • That conversation has focused on Chinese firms using distillation to create open-weight models that are nearly as capable as U.S. offerings, but available at a much lower cost.
  • Musk is in the process of suing OpenAI, CEO Sam Altman, and Greg Brockman, alleging they breached the original nonprofit mission for OpenAI by shifting the entity to a for-profit structure.

Why this matters: a development in AI with implications for how people work, create, and decide.

Open AI and Anthropic have been on the warpath lately against third-party efforts to train new AI models by prompting their publicly-accessible chatbots and APIs, a process known as distillation.

That conversation has focused on Chinese firms using distillation to create open-weight models that are nearly as capable as U.S. offerings, but available at a much lower cost. However, tech workers have widely assumed that American labs use these techniques on each other to avoid falling behind competitors.

Now, we know it s true in at least one case: on the stand in a California federal court on Thursday, Elon Musk was asked if xAI has used distillation techniques on OpenAI models to train Grok, and he asserted it was a general practice among AI companies. Asked if that meant yes, he said, Partly.

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