Musk’s xAI files antitrust lawsuit against Apple and OpenAI

Elon Musk’s AI startup, xAI, has filed a federal lawsuit in Texas against Apple and OpenAI, accusing them of conspiring to block fair competition in the AI market, Reuters reported.

The complaint claims that Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”

It further alleges that Apple’s partnership with OpenAI, which integrated ChatGPT into iPhones, iPads, and Macs, has given them an unfair advantage in the market.

“If not for its exclusive deal with OpenAI, Apple would have no reason to limit visibility of the X app and the Grok app in its App Store,” the lawsuit stated.

xAI is seeking billions in damages. An OpenAI spokesperson called the filing “consistent with Mr. Musk’s ongoing pattern of harassment,” while Apple has not commented.

Earlier this month, Musk warned that Apple’s actions “make it impossible for any AI company besides OpenAI to reach #1 in the App Store.”

Antitrust experts say the case could prove pivotal. Apple dominates the smartphone market, and its exclusive deal with OpenAI may strengthen xAI’s claims.

But legal scholars noted that Apple may argue it acted in a competitive environment and has no duty to boost its rivals.

The lawsuit could become the first in US courts to define the scope of the AI market.

Christine Bartholomew, a law professor at the University at Buffalo, said: “It’s a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.”

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