According to a report in the Financial Times, lawyers for Musk have contacted attorneys-general in Delaware and California to demand that a large stake in OpenAI be sold off in an open auction process.

In his letter, Musk’s lawyer pushed the attorneys general to allow outside investors to bid for the nonprofit’s stake in OpenAI. If successful, that could allow an outside investor to take a significant position in, and to exercise control over, the start-up.

Indeed, Musk suggested that synthetic data — data generated by AI models themselves — is the path forward. “The only way to supplement [real-world data] is with synthetic data, where the AI creates [training data],” he said. “With synthetic data … [AI] will sort of grade itself and go through this process of self-learning.”

Musk has been using this distribution channel since xAI launched its first version of the Grok large language model, adding features like trending story summaries and AI-generated questions on posts as well as releasing the Grok chatbot (initially) to X users exclusively.

Elon Musk's xAI supercomputer in Memphis was up and running in September. Here's a look at the project's progress and what's next.

The AI startup launched its first stand-alone consumer app, as the company tries to catch up with more established players such as OpenAI and Google in the generative AI race.