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OpenAI Case Day 4: Musk admits xAI distills OpenAI models
According to Beating Monitoring coverage, on the 4th day of the court hearing in Elon Musk’s lawsuit against OpenAI, the biggest highlight was that OpenAI’s lawyers shifted their focus to xAI. When Musk was asked whether xAI had distilled OpenAI technology, he first said, “Almost all AI companies do this,” and after being pressed on whether that amounted to an admission, he replied, “Part of it is.” Distillation is using one model’s outputs to train another model; OpenAI’s terms prohibit using its services to develop competing models.
On the 4th day of the court hearing in Elon Musk’s lawsuit against OpenAI, the biggest highlight shifted to xAI. OpenAI’s lawyer pressed Musk on whether xAI had distilled OpenAI technology. Musk first said, “Almost all AI companies do this,” and after being required to answer more clearly, admitted, “Part of it is.” The Verge said this amounts to confirming that xAI used OpenAI models to improve its own model.
Distillation is training one AI model using another AI model. It’s a common training method, but if a competitor uses it to replicate a strong model’s capabilities at low cost, it can turn into disputes over copyright, terms, and commercial competition.