Elon Musk’s artificial intelligence startup xAI has filed a lawsuit against Apple and OpenAI, alleging that the two companies are illegally hindering competition in the artificial intelligence industry. The federal suit, filed in Texas, accuses them of violating antitrust laws and locking up “markets to maintain their monopolies and prevent innovators like X and xAI from competing.”
Musk is seeking billions of dollars in damages and a federal injunction.
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The lawsuit claims Apple’s June 2024 partnership with OpenAI gives ChatGPT exclusive access to billions of user prompts from hundreds of millions of iPhones, making it the only AI chatbot with that advantage. Musk’s companies claim Apple and OpenAI have colluded to prevent iPhone users from picking their own AI assistant.
“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 lawsuit asserts.
Public accusations from Musk
Musk has been vocal against Apple on his social media platform X, accusing Apple’s App Store of “manipulating App Store rankings to unfairly promote OpenAI’s apps over competitors.” He also threatened to sue earlier this month.
“Apple is the gateway to the Internet for half of America,” Musk wrote on X Aug. 12. “They are making it impossible for any other AI company to succeed by relentlessly promoting OpenAI in every way possible!”
Apple and OpenAI respond
Apple has not responded to requests for comment regarding the lawsuit. Earlier this month, a spokesperson with Apple told Bloomberg its App Store “is designed to be fair and free of bias.”
“We feature thousands of apps through charts, algorithmic recommendations and curated lists selected by experts using objective criteria,” the spokesperson told Bloomberg in an email. “Our goal is to offer safe discovery for users and valuable opportunities for developers, collaborating with many to increase app visibility in rapidly evolving categories.”
A spokesperson with OpenAI responded to the lawsuit, saying, “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” as reported by The Wall Street Journal.
