The Thief Who Sued the Victim: Musk Admits xAI Trained on OpenAI's Models

Elon Musk built his empire on bold claims. But on Thursday, under oath, he made an admission that undermines his own billion-dollar lawsuit.

While testifying in his legal battle against OpenAI, Musk confirmed that xAI—his own artificial intelligence company—used OpenAI's models to train its own systems. The exchange was direct. An OpenAI attorney asked whether xAI had used "distillation"—the practice of training one AI model on another's outputs. Musk called it "standard practice." When pressed for a yes or no, he answered: "Partly."

The irony is almost too perfect. Musk is suing OpenAI for allegedly betraying its founding mission, claiming the company abandoned its nonprofit roots to pursue profit. Yet here he was, admitting that his own for-profit AI venture had benefited from the very technology he now claims was misappropriated.

Reputation in the tech world is built on consistency. Musk has positioned himself as the defender of open AI, the champion of transparency, the whistleblower who saw OpenAI's corruption coming. But this testimony paints a different picture: a competitor who used his rival's work while preparing to sue them for it.

The implications extend beyond this courtroom. Musk's lawsuit has been a cornerstone of his broader narrative—that OpenAI became a "closed, profit-driven subsidiary of Microsoft" contrary to its original charter. But if xAI used OpenAI's models, as Musk now admits, his moral high ground crumbles.

Distillation is common in AI development. Chinese lab DeepSeek has faced accusations of distilling OpenAI's models. The Trump administration has taken steps to prevent such practices. Yet Musk defended it as "standard practice"—right before acknowledging his own company did exactly that.

The jury now faces a choice: whom to believe. But the broader audience—tech leaders, investors, and the public—has already heard the confession. When you sue someone for taking what belongs to others, you should probably make sure you haven't done the same.

Musk's reputation has survived worse. But this admission complicates a narrative he has carefully crafted for years. Sometimes the most damaging testimony isn't what your opponent reveals—it's what you admit yourself.