Elon Musk testifies that xAI trained Grok on OpenAI models
"Distillation" is a hot topic as frontier labs try to prevent smaller competitors from copying their models.
OpenAI 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.”
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. That trial began this week, featuring testimony from the tech leader.
Musk’s admission is notable because distillation threatens AI giants by undermining the advantage they’ve built by investing in compute infrastructure. This allows other software makers to create models that are nearly as capable on the cheap. There’s no small amount of irony here, given the bending and alleged breaking of copyright rules by frontier labs in their search for sufficient data to train their models.
It’s no surprise that Musk’s xAI, which started in 2023, years after OpenAI, would try to learn from the then-leader in the field. It’s not clear that distillation is explicitly illegal, but rather may violate the terms of service companies set for the user of their products.
OpenAI, Anthropic, and Google have reportedly launched an initiative through the Frontier Model Forum to share information about how to combat distillation attempts from China. These typically involve systematic querying of models to understand their inner workings. To stop the efforts, frontier labs are working to prevent users from making suspicious mass queries.
OpenAI did not respond to a request for comment on Musk’s admission at press time.
Later in his testimony, Musk was asked about a claim he made last summer that xAI would soon be far beyond any company besides Google. In response, he ranked the world’s leading AI providers, saying Anthropic held the top spot, followed by OpenAI, Google, and Chinese open source models. He characterized xAI as a much smaller company with just a few hundred employees.
When you purchase through links in our articles, we may earn a small commission . This doesn’t affect our editorial independence.
StrictlyVC kicks off the year in SF. Register now for unfiltered fireside chats and VC insights with leaders from Uber, Replit, Eclipse, and more. Plus, high-value connections that actually move the needle. Tickets are limited.
On the stand, Elon Musk can’t escape his own tweets Tim Fernholz
On the stand, Elon Musk can’t escape his own tweets
On the stand, Elon Musk can’t escape his own tweets
OpenAI ends Microsoft legal peril over its $50B Amazon deal Julie Bort
OpenAI ends Microsoft legal peril over its $50B Amazon deal
OpenAI ends Microsoft legal peril over its $50B Amazon deal
DeepMind’s David Silver just raised $1.1B to build an AI that learns without human data Anna Heim
DeepMind’s David Silver just raised $1.1B to build an AI that learns without human data
DeepMind’s David Silver just raised $1.1B to build an AI that learns without human data
OpenAI could be making a phone with AI agents replacing apps Ivan Mehta
OpenAI could be making a phone with AI agents replacing apps
OpenAI could be making a phone with AI agents replacing apps
The Stanford freshmen who want to rule the world … will probably read this book and try even harder Connie Loizos
The Stanford freshmen who want to rule the world … will probably read this book and try even harder
The Stanford freshmen who want to rule the world … will probably read this book and try even harder
Two college kids raise a $5.1 million pre-seed to build an AI social network in iMessage Dominic-Madori Davis
Two college kids raise a $5.1 million pre-seed to build an AI social network in iMessage
Two college kids raise a $5.1 million pre-seed to build an AI social network in iMessage
Meta’s loss is Thinking Machines’ gain Connie Loizos
Key takeaways
- Distillation could democratize access to AI technologies but raises intellectual property concerns.
- Collaboration among major AI companies may create entry barriers for new startups in Brazil.
- The evolution of AI regulations will be crucial to balance innovation and copyright protection.
Editorial analysis
Elon Musk's revelation about xAI's use of distillation techniques to train Grok based on OpenAI models marks an important milestone in the debate over ethics and legality in the use of artificial intelligence models. For the Brazilian tech sector, this issue is particularly relevant as many local startups and companies are exploring AI, and the potential to use similar techniques could democratize access to advanced technologies. However, it also raises concerns about intellectual property protection and the sustainability of investment in research and development by large companies.
Moreover, the fight against distillation could impact the global AI ecosystem, especially at a time when Chinese companies are becoming increasingly competitive. The collaborative movement between OpenAI, Anthropic, and Google through the Frontier Model Forum suggests that companies are banding together to face a common challenge, which may result in strengthening entry barriers for new market participants. For Brazil, this could mean that local startups will need to be even more innovative and creative to stand out in a landscape where access to cutting-edge AI models may be restricted.
What to watch for next is how legislation and regulations around AI will evolve in response to these practices. The issue of distillation may lead to a broader debate on ethics in AI and the need for a regulatory framework that protects both innovation and copyright rights. For Brazil, where technology legislation is still developing, this discussion could influence the formulation of policies that encourage innovation while protecting the rights of content creators and technology developers.
What this coverage includes
- Clear source attribution and link to the original publication.
- Editorial framing about relevance, impact, and likely next developments.
- Review for readability, context, and duplication before publication.
Original source:
TechCrunch AIAbout this article
This article was curated and published by AIDaily as part of our editorial coverage of artificial intelligence developments. The content is based on the original source cited below, enriched with editorial context and analysis. Automated tools may assist with translation and initial structuring, but publication decisions, factual review, and contextual framing remain editorial responsibilities.
Learn more about our editorial process