Musk Accuses Apple and OpenAI of AI Power Grab Through App Store Favoritism

Elon Musk’s xAI has filed a federal antitrust lawsuit in Texas against Apple and OpenAI, accusing the two companies of colluding to suppress competition in artificial intelligence. The 61-page complaint, filed by xAI and X Corp., claims Apple has unfairly favored ChatGPT — a product of OpenAI — in its app store rankings and within its iPhone AI integration, stifling opportunities for xAI’s Grok chatbot and other AI competitors [1]. This legal action follows Musk’s recent social media complaints about the alleged bias against xAI in Apple’s app store rankings [2].

The lawsuit frames Apple and OpenAI as monopolistic entities conspiring to maintain dominance in an AI-driven technological era. It argues that Apple, perceiving AI as an existential threat to its core iPhone business, has entered into a partnership with OpenAI to ensure that ChatGPT remains the preferred AI solution on iPhones, thus limiting the reach of competing AI models. The lawsuit also notes that Apple’s AI capabilities remain incomplete, potentially increasing reliance on ChatGPT and giving OpenAI a competitive edge through exclusive access to user interaction data [1].

Musk’s legal team highlights Apple’s decision to integrate ChatGPT as the default AI-powered “answer engine” on iPhones. This move, the lawsuit claims, has created a conflict of interest by allegedly prioritizing ChatGPT over other AI apps in the App Store rankings. For instance, Grok, xAI’s chatbot, was previously ranked No. 5 in the AI category, while ChatGPT occupied the top position [2]. The lawsuit further asserts that Apple’s actions have created an uneven playing field for AI developers and innovators.

OpenAI, meanwhile, is accused of prioritizing profit over public safety and ethical AI development. This portrayal aligns with a separate lawsuit Musk filed earlier in the year, in which he alleged that OpenAI had abandoned its nonprofit mission and research objectives. OpenAI responded to the latest legal filing by calling it part of Musk’s “ongoing pattern of harassment,” referencing its own recent lawsuit against Musk [1]. Apple has not yet commented on the matter.

The legal battle adds to a broader narrative of regulatory scrutiny over AI market dominance. The U.S. Department of Justice has already filed an antitrust case against Apple, echoing some of the allegations made in this lawsuit. Analysts suggest that the outcome could have significant implications for AI development, competition, and how major tech firms leverage their platforms to promote certain AI products [1].

This case also highlights the growing tension between AI startups and established tech giants. As AI becomes an increasingly critical component of digital services, startups like xAI face significant challenges in competing with entrenched players like Apple and OpenAI, particularly when those players control the platforms on which AI tools are distributed and ranked. The lawsuit seeks both monetary damages and a court order to stop what it describes as anticompetitive behavior [1].

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[1] Elon Musk Accuses of Apple and OpenAI of Stifling AI Competition in Antitrust Lawsuit (https://www.wfmj.com/story/53029469/elon-musk-accuses-of-apple-and-openai-of-stifling-ai-competition-in-antitrust-lawsuit)

[2] Elon Musk Makes Good on Threat to Sue Apple, Saying They Hurt AI Competition (https://sherwood.news/tech/xai-sues-apple-openai-elon-musk-chatgpt)