Musk admits xAI trained models using OpenAI's technology

During jury selection in Oakland federal court, Elon Musk testified that xAI partially trained its AI models through distillation, a technique that extracts knowledge from OpenAI's larger systems to build smaller, more efficient versions. The admission came in Musk's breach of charitable trust lawsuit against OpenAI, which he co-founded in 2015. Distillation is standard practice in AI development, but its use across competing companies raises novel questions about intellectual property boundaries.