Musk v. Altman: when asked whether xAI has distilled OpenAI models, Elon Musk says the claim is "partly" true (Wired)

Elon Musk has acknowledged that xAI has partially utilized model distillation techniques from OpenAI, while separately the White House is actively blocking Anthropic's plan to expand access to its advanced Mythos model to 70 additional companies due to national security and compute capacity concerns. This represents a significant shift in AI governance strategy, with government agencies now directly controlling frontier AI model distribution rather than relying on industry self-regulation, creating new precedents for how CIOs will access and deploy advanced AI capabilities. The fragmented landscape of restricted AI access across competing vendors will force IT organizations to navigate complex government approval processes and potential supply chain risks when adopting next-generation AI technologies.