elon musk xAI sues Apple, openAI over alleged schme to dominate AI

Elon Musk’s artificial intelligence startup, xAI, has filed a lawsuit in a Texas federal court accusing tech giants Apple and OpenAI of conspiring to monopolize the AI industry and suppress competition. The lawsuit alleges that Apple and OpenAI have formed an exclusive partnership that unfairly blocks other AI companies, including xAI’s Grok chatbot, from reaching users on Apple devices and in the Apple App Store.

The litigation centers on a 2024 agreement under which Apple integrated OpenAI’s ChatGPT AI technology into iPhones, iPads, and Macs, establishing ChatGPT as the default generative AI platform on Apple’s operating system. xAI claims this partnership effectively shuts out competitors by limiting their app rankings, visibility, and user engagement, thereby preserving Apple’s and OpenAI’s dominant market positions.

According to the complaint, the artificial intelligence capabilities integrated into Apple’s system, branded as “Apple Intelligence,” have prevented iPhone users from using alternative AI chatbots easily, compelling them to rely mainly on OpenAI’s offerings. This dominance allegedly allows OpenAI to gather vast amounts of user data, which drives further improvements to its AI, creating a cycle that stifles innovation from emerging competitors like xAI.

xAI’s lawsuit describes the situation as “a tale of two monopolists joining forces to ensure their continued dominance” and seeks billions in damages while requesting court orders to stop the anticompetitive conduct.

Elon Musk, who co-founded OpenAI but left in 2018, launched xAI in 2023 aiming to compete directly with established AI leaders. The company acquired Musk’s social media platform X earlier this year to leverage user interactions for training its Grok chatbot. Grok has also been integrated into Tesla vehicles, another Musk enterprise.

Neither Apple nor OpenAI has commented immediately on the lawsuit. OpenAI labeled Musk’s legal actions as a pattern of harassment. This lawsuit adds to Musk’s broader legal disputes with OpenAI and highlights rising tensions as the tech industry’s major players battle for AI dominance.

Apple’s App Store practices have faced scrutiny already through other legal challenges concerning market fairness, and this case could further influence how AI competition and platform control are regulated.