Elon Musk’s xAI Files Lawsuit Against Apple and OpenAI
In a surprising turn of events, Elon Musk’s artificial intelligence venture, xAI, has initiated legal action against tech giants Apple and OpenAI in a Texas federal court. The lawsuit alleges that both companies are unlawfully colluding to stifle competition in the AI industry.
The suit claims that Apple and OpenAI have effectively monopolized the market to hinder innovators, like xAI, from successfully competing. It mentions that “locked up markets” have made it difficult for new entrants to gain traction.
Part of the complaint focuses on the supposed suppression of xAI’s products, particularly within the Apple App Store. xAI contends that, if it weren’t for an exclusive agreement with OpenAI, Apple would likely be more inclined to feature the X app and the Grok app prominently.
As of now, Apple and OpenAI have not publicly commented on the lawsuit.
Earlier this month, Musk had already hinted at potential legal action against Apple, indicating on his social media platform X that the company’s practices make it nearly impossible for any AI firm other than OpenAI to dominate the App Store.
Interestingly, Apple has collaborated with OpenAI by integrating its ChatGPT platform into various devices like iPhones, iPads, and Macs.
xAI, launched less than two years ago, acquired the platform X for $33 billion in March, aiming to boost its chatbot training capabilities. Additionally, Musk has incorporated the Grok chatbot into Tesla vehicles.
Musk’s xAI is positioned against other players in the market, such as Microsoft-backed OpenAI and the Chinese startup DeepSeek. Separately, Musk is pursuing legal action against OpenAI and its CEO, Sam Altman, in California, challenging the organization’s shift from nonprofit to for-profit status. It’s worth noting that Musk was one of the co-founders of OpenAI back in 2015.
Apple’s App Store practices have faced scrutiny in various lawsuits, including one from Epic Games, the creator behind “Fortnite,” which has led to legal measures for increased competition in app payment systems.
