Elon Musk’s Xai Files Lawsuit Against Apple and OpenAI
Elon Musk’s AI venture, Xai, has initiated legal action against both Apple and OpenAI, claiming that they have engaged in “anti-competitive schemes” aimed at stifling rival AI companies’ growth.
Xai, along with social network Business X, filed the lawsuit in the US District Court for the Northern District of Texas. The complaint argues that both Apple and OpenAI maintain monopolies within the smartphone and AI markets, which they assert limit competition and hinder innovation in the AI sector.
The lawsuit alleges that Apple has manipulated its App Store rankings to disadvantage competitors such as Xai’s Grok while also promoting OpenAI by integrating its ChatGPT chatbot into various Apple devices, including iPhones, iPads, and Mac computers. Musk’s legal filing describes this situation as “the story of two combined monopolies,” contending that it “confined” the available market for products and services.
The complaint states, “In a desperate bid to protect smartphone monopoly, Apple has joined forces with OpenAI, benefiting most from hindering competition and innovation in AI.”
A representative from OpenAI has responded, stating that the lawsuit aligns with Musk’s ongoing pattern of harassment. Apple has yet to comment on the matter.
This lawsuit comes on the heels of Musk’s previous threats to sue Apple, alleging “clear antitrust violations” and asserting that non-OpenAI AI companies struggle to rank high on the App Store. Apple has maintained that its App Store remains “fair and unbiased,” highlighting that it features “thousands of apps” that leverage various signals for determining rankings. Last year, Apple announced a partnership with OpenAI to incorporate ChatGPT into a variety of its products.
The tension between Musk and OpenAI’s CEO Sam Altman has been escalating. Musk, who co-founded OpenAI with Altman in 2015, departed in 2018 due to differences in vision. Musk had previously sued OpenAI and Altman, accusing them of prioritizing commercial interests over their original mission of developing AI “widely for the benefit of humanity.”
In a counterclaim, OpenAI alleged that Musk and Xai have engaged in “harassment” through lawsuits and attacks on social media, even making “fake bids” to purchase the company behind ChatGPT, which they claimed was worth $97.4 billion.
