Elon Musk’s artificial intelligence startup, xAI, has filed a federal lawsuit in Texas against Apple and OpenAI. The company alleges that the tech giants conspired to block fair competition in the AI sector.
The complaint claims that Apple and OpenAI “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” xAI argues that Apple’s exclusive integration of OpenAI’s ChatGPT into iPhones, iPads, and Macs has created an unfair advantage in the market.
According to the lawsuit, Apple’s deal with OpenAI has limited the visibility of competing apps, including xAI’s Grok and Musk’s X app. “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 filing states.
xAI is seeking billions of dollars in damages. OpenAI responded by calling the lawsuit part of Musk’s “ongoing pattern of harassment,” while Apple has not issued a comment. Earlier this month, Musk warned that Apple’s behavior “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
Antitrust experts suggest this case could be a turning point. Apple dominates the smartphone market, and the exclusive partnership with OpenAI may strengthen xAI’s claims. Legal scholars note that Apple could argue it acted within a competitive framework and has no obligation to favor rival apps.
This lawsuit may also be the first in the United States to formally define the scope of the AI market. Christine Bartholomew, a law professor at the University at Buffalo, described it as “a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.”
The case is now being closely watched by technology companies and legal experts alike. Its outcome could shape the future of AI competition and antitrust enforcement in the United States.
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