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Home > Tech and Auto News > ChatGPT vs xAI: Elon Musk Admits Using OpenAI Models For Training, Ignites Ethical Concerns—Know SpaceX CEO’s Stand

ChatGPT vs xAI: Elon Musk Admits Using OpenAI Models For Training, Ignites Ethical Concerns—Know SpaceX CEO’s Stand

Elon Musk admitted in court that xAI may have used OpenAI models for training, reigniting ethical concerns. This comes amid his lawsuit against Sam Altman over the company’s shift to a profit-driven model.

Published By: Syed Ziyauddin
Published: Fri 2026-05-01 12:24 IST

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During the ongoing high-profile case between tech billionaires Elon Musk and Sam Altman, SpaceX founder and CEO Musk himself has created one more controversy. During the federal court hearing, Musk agreed with the fact that his AI venture, xAI has drawn on models developed by OpenAI to refine its own system. This is a renowned controversial practice in the tech industry commonly known as model distillation. 

During the hearing, he explains distillation using one AI model to train another. When the court asked directly whether xAI had used OpenAI’s models in this way, Musk skirted a clear confirmation, stating that such practices are common in the industry. While addressing Press, he indicates that the answer was partly correct, adding that companies often depend on another AI system to validate and enhance accuracy. 

However, it may not sound like any harm; it is ethical wrong. Tech giants such as Google and Anthropic have previously warned that distillation in some cases can be used to replicate capabilities without the same level of investment and it also raise questions regarding the intellectual property and fair use but still it stands as a widely adopted method to enhance efficiency and reduce costs. After the acknowledgment from the Musk, it will become a bigger debate for the industry. 

Elon Musk vs Sam Altman case

The ongoing court case was filled by Elon Musk against OpenAI, CEO Sam Altman, and President Greg Brockman. SpaceX Chief alleged the company has ditched its founding non-profit mission to develop AI for humanity and instead become a profit-oriented commercial organisation through its multi-billion-dollar partnership with Microsoft. 

Elon Musk’s OpenAI journey

In 2015, Musk co-founded the OpenAI with Sam Altman, Gerg Brockman, and others as a non-profit venture to counterweight Google, with the goal of creating artificial general intelligence (AGI) that was open-source and benefited all humanity. In the organisation Musk’s role was to provide significant initial funding and he was a key figure in the recruiting team. Musk invested around $45 million in the initial phase. 

In 2018, Musk resigned from the board. He stated the official reason as potential conflict of interest with Tesla’s own AI development. However, some internal reports claim that he unsuccessfully attempted to take full control of the company. 

After the departure of the Musk from the board, the company moved to a “capped profit” model in 2019 to raise the massive capital needed for computing power, and this led to a multi-billion-dollar deal with software giant Microsoft. 

After the OpenAI and Microsoft partnership Elon Musk has become one of the most vocal critics of the OpenAI arguing that it has become a “closed-source, maximum-profit company effectively controlled by Mircosoft,” which he claimed is the exact opposit of what he intended. 

Also Read: Elon Musk Vs Sam Altman: From Late Lawsuit Filing To Shivon Zilis Connection, Here Are Five Key Points Of High Profile Court Case

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