Elon Musk Sues Apple Over Exclusive OpenAI ChatGPT Partnership

Elon Musk's companies, X and xAI, are suing Apple and OpenAI over an alleged anti-competitive deal that gives OpenAI's ChatGPT exclusive access to iPhones. The lawsuit claims the deal shuts out rivals like xAI's Grok chatbot from the lucrative smartphone AI market. Musk argues that the deal gives ChatGPT an unfair advantage, forcing users to download a separate app or visit a website to access Grok.

Elon Musk's artificial intelligence startup xAI and his social media platform X have filed a lawsuit against Apple Inc. (AAPL) and artificial intelligence giant OpenAI, alleging that the companies have engaged in anti-competitive practices by favoring OpenAI's ChatGPT over xAI's Grok chatbot [1]. The lawsuit, filed in a Texas federal court, claims that Apple and OpenAI have "locked up markets" to maintain their monopolies and prevent innovators like xAI from competing [2].

The lawsuit alleges that Apple and OpenAI's partnership is "a tale of two monopolists joining forces to ensure their continued dominance," as quoted in the complaint [1]. It argues that the deal gives ChatGPT an unfair advantage by making it the exclusive AI chatbot for Apple devices, while forcing users to download a separate app or visit a website to access competing chatbots like Grok [2].

Elon Musk has been vocal about his concerns with the deal, previously stating that it makes it "impossible for any AI company besides OpenAI to reach #1 in the App Store" [2]. The lawsuit seeks billions of dollars in damages and a permanent injunction to block Apple and OpenAI from carrying out the arrangement [1].

Apple and OpenAI have not yet responded to the lawsuit. Antitrust scholars suggest that the case could be a significant moment for AI regulation, as courts may be forced to decide whether AI constitutes a distinct market under U.S. law [2].

References:

[1] https://www.benzinga.com/markets/tech/25/08/47323905/elon-musks-xai-x-sue-apple-and-openai-seek-billions-in-damages-say-chatgpt-partnership-is-a-tale-of-two-monopolists-joining-forces
[2] https://finance.yahoo.com/news/inside-elon-musks-suit-against-apple-and-openai-this-is-a-tale-of-two-monopolists-194043501.html
[3] https://interestingengineering.com/culture/elon-musk-xai-sues-apple-openai-antitrust