Elon Musk told a court that xAI partially used OpenAI models in Grok via distillation, according to CoinDesk, which points to the claim as part of ongoing legal scrutiny.
The same CoinDesk item frames the situation as one more flashpoint in the AI arms race and a sign of lingering legal gray areas around model training and reuse.
For market watchers, the CoinDesk text also mentions the xAI token moving sideways. It does not provide details that explain the move, and any token behavior should be treated as risky rather than a verdict on the merits.
At this point, the practical takeaway is narrower than the headlines. CoinDesk reports the existence of court testimony about distillation using OpenAI models. It does not lay out the full factual record or the legal outcome.
If you track crypto assets tied to AI narratives, keep the distinction clear. Legal testimony can shift perceptions quickly, but it does not automatically translate into a clean or immediate business result for an asset like any other high-volatility risk exposure.