TEXAS: Elon Musk’s artificial intelligence startup xAI has filed a lawsuit against Apple and OpenAI in United States federal court.
The lawsuit accuses both companies of illegally conspiring to thwart competition in artificial intelligence markets.
xAI claims Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”
This legal action follows Apple’s partnership with OpenAI to integrate ChatGPT into its iPhone, iPad, and Mac operating systems.
The lawsuit states “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.”
xAI is seeking billions of dollars in alleged damages from both companies.
An OpenAI spokesperson responded by calling the lawsuit “consistent with Mr. Musk’s ongoing pattern of harassment.”
Apple did not immediately respond to requests for comment on the legal filing.
Musk reinforced the lawsuit’s allegations through a post on his social media platform X.
He wrote “A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists.”
Musk had previously threatened legal action against Apple earlier this month regarding App Store rankings.
He claimed Apple’s behavior “makes it impossible for any AI company besides OpenAI to reach number one in the App Store.”
OpenAI’s ChatGPT became the fastest-growing consumer application in history following its late 2022 launch.
Musk’s xAI acquired social media platform X for $33 billion in March to enhance its chatbot training capabilities.
The Grok chatbot has also been integrated into vehicles produced by Musk’s electric automobile company Tesla.
xAI launched less than two years ago and competes with Microsoft-backed OpenAI and Chinese startup DeepSeek.
Antitrust experts not involved in the case suggest Apple’s smartphone market dominance could support xAI’s claims.
They note Apple might argue that partnering with OpenAI represented a legitimate business decision in a competitive environment.
University of Pennsylvania law professor Herbert Hovenkamp suggested Apple could cite security or operational reasons for AI integration.
This lawsuit represents the first opportunity for United States courts to define the AI market for antitrust purposes.
University at Buffalo law professor Christine Bartholomew called it “a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.”
Musk is separately suing OpenAI and CEO Sam Altman in California regarding the company’s conversion to for-profit status.
Apple’s App Store practices remain under legal scrutiny in multiple ongoing cases.
A judge previously ordered Apple to allow greater competition for app payment options in the Epic Games case. – Reuters
