Elon Musk-Backed Firms File Lawsuit Against Apple and OpenAI Over Alleged Anti-Competitive Deal
Two businesses backed by Elon Musk, X and xAI, have launched a formal lawsuit against Apple and OpenAI, claiming the tech giants conspired to block competition in the AI market.
The legal action, filed in federal court in Texas, centers on Apple’s integration of OpenAI’s ChatGPT into its smartphone operating systems under an exclusive arrangement. Musk’s companies argue that the deal violated competition laws and unfairly limited market access for rival AI developers.
Musk Warned of Apple Favoritism
Earlier this month, Musk had publicly criticized Apple, alleging the company favored OpenAI in its App Store rankings. The current lawsuit appears to follow through on that threat.
Apple has not issued an immediate response to requests for comment. OpenAI, however, described the filing as “consistent with Mr Musk’s ongoing pattern of harassment”.
From Collaborators to Rivals
Musk and OpenAI CEO Sam Altman co-founded OpenAI in 2015. Over the years, their relationship has turned adversarial, with Musk accusing Altman of straying from the company’s original mission to serve the public good.
This rivalry has intensified as Musk has launched his own AI ventures, including xAI and the Grok chatbot.
Alleged Market Advantage and Anti-Competitive Effects
According to the lawsuit, Musk’s firms claim “there is no valid business reason for the Apple-OpenAI deal to be exclusive.” They argue that the 2024 agreement has made it more difficult for competitors to enter the market, while giving OpenAI access to millions of Apple users’ prompts and activity.
The lawsuit also alleges that the deal gave OpenAI’s ChatGPT an advantage in the App Store, “boosting its downloads relative to other generative AI chatbots.”
“The Apple-OpenAI arrangement has foreclosed competition among generative AI chatbots, deprived competing generative AI chatbots of scale, and reduced quality and innovation,” the filing states. “All of these impacts have, in turn, helped OpenAI and Apple maintain their monopolies.”
OpenAI is said to control approximately 80% of the US generative AI chatbot market, while Apple holds around 65% of the smartphone market.
Apple’s Legal History and App Store Practices
Apple’s app store practices and partnerships with other tech giants have been scrutinized in multiple legal battles, including a high-profile antitrust lawsuit against Google. The company has previously defended its App Store policies as “fair and free of bias,” noting that competitors such as DeepSeek and Perplexity have reached top App Store rankings since 2024.
Additionally, Apple has reportedly been in discussions with Google to explore integrating the company’s Gemini chatbot into Siri, its voice assistant.
0 Comments