Elon Musk’s artificial intelligence startup xAI has filed a lawsuit in federal court in Texas against Apple and OpenAI, accusing them of conspiring to prevent fair competition in the AI market, Reuters reported.
The complaint alleges that Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”
It claims Apple’s partnership with OpenAI, which integrated ChatGPT into iPhones, iPads and Macs, has unfairly tilted the marketplace.
“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 said.
xAI is seeking billions of dollars in damages. An OpenAI spokesperson responded that “This latest filing is consistent with Mr Musk’s ongoing pattern of harassment.” Apple did not immediately comment.
Musk had warned earlier this month that Apple’s behaviour “makes 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.”
