xAI is suing Apple and OpenAI for anticompetitive behavior
Elon Musk ‘s xAI startup is suing both OpenAI and Apple for alleged anticompetitive behavior relating to artificial intelligence.
Musk is focusing on these two firms because of the partnership and collaborative arrangements that exist between them. OpenAI has an agreement with Apple to integrate its ChatGPT tool into iOS and macOS. This is something that troubles xAI.
The lawsuit, filed in the United States District Court For The Northern District Of Texas Fort Worth Division, starts in dramatic form by stating: “this is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence”.
It goes on to say (PDF):
Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.Plaintiffs bring this suit to stop Defendants from perpetrating their anticompetitive scheme and to recover billions in damages.
The lawsuit reveals that Musk feels slighted by the arrangement bewteen Apple and OpenAI, suggesting that it is unfair on his own products:
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.
In a statement given to Reuters, a spokesperson for Open AI was dismissive of the lawsuit, saying:
This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.
Musk appears to be of the mind that Apple gives preferential treatment to ChatGPT within the App Store, but this is something which is brought into question by CNBC. The news outlet points out that rival AI tools – including DeepSeek and Perplexity – have taken places at the top of App Store charts, not just ChatGPT.
The lawsuit was something Musk threatened recently in a post on X – a post that attracted the attention of Sam Altman. Musk said:
Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.
xAI will take immediate legal action.
Altman responding by saying:
This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn't like.
After filing the lawsuit, Musk took to X in a bitter tone to say: “A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists”.
The case is unlikely to conclude quickly as neither side is going to be willing to cede any ground, leaving little room for dialog. It will ultimately be up to the courts to decide, but it feels as thougvh Musk has something of an uphill battle on his hands.
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