Elon Musk’s AI startup xAI has filed a lawsuit against Apple and OpenAI, accusing the two companies of engaging in an “anticompetitive scheme” to hinder the growth of rival AI companies.
CNBC reports that Elon Musk’s AI startup xAI, along with its social network business X, has filed a lawsuit against tech giant Apple and AI powerhouse OpenAI in the U.S. District Court for the Northern District of Texas. The complaint alleges that Apple and OpenAI have “colluded” to maintain their respective monopolies in the smartphone and generative AI markets, effectively stifling competition and innovation in the AI industry.
According to the lawsuit, Apple has been deprioritizing so-called super apps and generative AI chatbot competitors, such as xAI’s Grok, in its App Store rankings. Meanwhile, the company has been favoring OpenAI by integrating its ChatGPT chatbot into Apple products, including iPhones, iPads, and Mac laptops and desktops. According to Musk’s lawsuit, this is “a tale of two monopolists joining forces” that have “locked up” the market for their products and services.
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, a monopolist in the market for generative AI chatbots.”
In response to the lawsuit, an OpenAI spokesperson stated that the filing is “consistent with Mr. Musk’s ongoing pattern of harassment.” Apple representatives have not yet provided a comment on the matter.
The lawsuit comes shortly after Musk threatened to sue Apple for “an unequivocal antitrust violation,” claiming that the company’s actions make it impossible for any AI company besides OpenAI to reach the top spot in the App Store. Apple had previously stated that its App Store is designed to be “fair and free of bias” and features “thousands of apps” using various signals to determine rankings. The company’s partnership with OpenAI, announced last year, aimed to integrate ChatGPT into various Apple products.
The ongoing clash between Musk and Altman has been escalating, with Musk having co-founded OpenAI alongside Altman in 2015 before leaving the startup in 2018 due to disagreements over its direction. Musk sued OpenAI and Altman last year, accusing them of breach of contract for prioritizing commercial interests over the original mission to develop AI “for the benefit of humanity broadly.”
In a counterclaim, OpenAI alleged that Musk and xAI engaged in “harassment” through litigation, social media attacks, press attacks, and a “sham bid” to buy the ChatGPT-maker for $97.4 billion, which was designed to harm the company’s business relationships.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
