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Musk v. Altman week 1: Elon Musk says he was duped, warns AI could kill us all, and admits that xAI distills OpenAI’s models

Musk said xAI had partly distilled OpenAI models as the trial exposed emails and broader disputes over AI model copying and reverse-engineering.

  • On Thursday, plaintiff Elon Musk admitted on the stand that his startup had "distilled" OpenAI's models. This revelation occurred during the ongoing legal battle Musk initiated against the company he co-founded in 2015.
  • Musk alleges OpenAI was "stolen" from him and abandoned its nonprofit mission. He demands the company unwind its for-profit structure, remove Sam Altman and president Greg Brockman, and pay $150 billion in damages.
  • Distillation involves training smaller models to mimic larger ones for speed and efficiency. Many open Chinese models used American-made AI models for this practice, which OpenAI recently accused DeepSeek of doing.
  • The lawsuit aims to damage a competitor, potentially helping his Grok chatbot gain ground against ChatGPT and Claude. This trial illustrates the cutthroat nature of the industry as Musk seeks an edge.
  • SpaceX provides momentum as the company develops its own advanced technology. Musk, who predicts AI will surpass human intelligence within five years, continues to finance his ambitions.
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Semafor broke the news in New York, United States on Friday, May 1, 2026.
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