Billionaire entrepreneur Elon Musk’s artificial intelligence startup, xAI, has filed a lawsuit against Apple and ChatGPT maker OpenAI in a U.S. federal court in Texas, accusing them of conspiring to stifle competition in the AI industry.
According to the complaint, Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” The suit seeks billions of dollars in damages.
Exclusive Deals Under Scrutiny
Apple recently partnered with OpenAI to integrate ChatGPT into its operating system for iPhones, iPads, and Macs. Musk’s filing argues that Apple’s exclusive deal with OpenAI has limited visibility for xAI’s products, including the Grok chatbot.
“If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store,” the lawsuit stated.
Musk later echoed the claim on his social platform X, writing: “A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists.”
OpenAI dismissed the lawsuit as part of Musk’s ongoing vendetta. “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” a spokesperson said. Apple has not yet responded to the allegations.
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Musk had earlier threatened to sue Apple, claiming its behaviour “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
Broader Implications for Antitrust
Legal experts note that Apple’s dominance in the smartphone market could lend weight to xAI’s claims that the company is unlawfully tying iPhone sales to its AI partnership. However, Apple could argue its OpenAI partnership was a legitimate business decision.
“This case is a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI,” said Christine Bartholomew, a law professor at the University at Buffalo.
The case may become the first in U.S. courts to test whether artificial intelligence qualifies as a defined market under antitrust law.
The lawsuit adds to Musk’s broader fight with OpenAI. He is separately suing the company and its CEO Sam Altman in California to stop its conversion from a nonprofit into a for-profit business. Musk co-founded OpenAI with Altman in 2015 as a nonprofit before leaving in 2018.
Apple, meanwhile, continues to face antitrust challenges over its App Store practices, including a high-profile case brought by “Fortnite” developer Epic Games.
