Elon Musk’s Companies Sue Apple and OpenAI for Alleged Anticompetitive Scheme in AI Market

In a surprising turn of events, Elon Musk’s ventures, xAI and X Corporation, filed a lawsuit against Apple Inc. and OpenAI on Monday, alleging an anticompetitive scheme to stifle competition in the artificial intelligence (AI) sector.

The lawsuit, lodged at the U.S. District Court for the Northern District of Texas, claims that Apple and OpenAI have conspired to maintain monopolies in the smartphone market and generative AI chatbots. The complaint alleges that Apple has deliberately prioritized certain apps over competitors such as xAI’s Grok in its App Store rankings, while favoring OpenAI by seamlessly integrating ChatGPT into their products.

According to the lawsuit, Apple’s actions are designed to protect its smartphone market dominance by hindering competition and innovation in AI, particularly in the generative AI chatbot segment, where OpenAI holds a significant position.

Musk previously threatened legal action against Apple, asserting that their behavior constitutes an “unequivocal antitrust violation.” He claimed on X’s platform that Apple’s actions make it nearly impossible for any AI company besides OpenAI to claim the top spot in the App Store.

OpenAI declined to comment, while Apple did not respond immediately to a request for comment. In response to Musk’s allegations on X, OpenAI CEO Sam Altman stated, “This is an extraordinary claim given what I have heard alleged about Elon’s tactics to manipulate X to benefit himself and his own companies, harming his competitors and those he dislikes.”

Previously, Apple had partnered with OpenAI to incorporate ChatGPT into various products including iPhones, iPads, Mac laptops, and desktop computers. The lawsuit marks a new chapter in the ongoing rivalry between Musk and Altman, who co-founded OpenAI together in 2015 before Musk left due to disagreements over the organization’s direction.

Last year, Musk sued OpenAI and Altman, accusing them of breach of contract for prioritizing commercial interests over their original mission to develop AI for the betterment of humanity at large.