Elon Musk’s artificial intelligence startup, xAI, has initiated legal action against Apple and OpenAI, claiming that the two companies are engaged in an "anticompetitive scheme" to suppress competition in the smartphone and generative AI markets. The lawsuit, filed in the U.S. District Court for the Northern District of Texas, accuses Apple of manipulating its App Store rankings to disadvantage xAI’s Grok chatbot while favoring OpenAI's ChatGPT by integrating it into Apple products.
Musk's allegations suggest that Apple is prioritizing its own interests at the expense of other AI competitors, thereby maintaining its monopoly in the smartphone sector. The complaint states, “In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI.”
OpenAI has responded to the lawsuit, characterizing it as part of Musk's ongoing "pattern of harassment." The company has previously indicated that Musk's legal tactics, alongside his social media activities, are aimed at undermining their business. Apple has not yet publicly commented on the lawsuit but has previously defended its App Store practices as fair and unbiased.
This lawsuit follows a series of public disputes between Musk and OpenAI CEO Sam Altman, who co-founded OpenAI with Musk in 2015. Musk departed from the organization in 2018 over disagreements regarding its direction. The legal conflict represents a significant escalation in the ongoing rivalry between Musk and Altman, particularly as Musk seeks to establish xAI as a key player in the competitive AI landscape.