On Monday, Elon Musk escalated the legal battle between his companies and OpenAI, by filing a fresh lawsuit against both OpenAI and Apple. The allegations claim that both parties have engaged in unfair business practices within the AI industry, potentially stifling competition.
Last year, Apple and OpenAI entered into a partnership, enabling Apple users to interact with OpenAI’s chatbot, ChatGPT, directly on iPhones. However, rivals like Elon Musk’s social media firm and artificial intelligence company X.AI LLC claim that this deal has limited their competitive opportunities and established a monopoly for both Apple and OpenAI in certain markets.
In the legal action filed at the U.S. District Court in Texas this week, the plaintiffs aim to halt Apple and OpenAI from executing their anti-competitive practices and also seek compensation amounting to billions of dollars. Specifically, Musk’s companies, X based in Bastrop, Texas, and xAI located in San Francisco, are pursuing a permanent court order to stop the alleged unlawful activities.
The legal dispute continues between Elon Musk and the CEO of OpenAI, Sam Altman. Initially, Musk was a financier for OpenAI but later withdrew from their board and founded another AI company called xAI. Currently, Musk is involved in a lawsuit against OpenAI and Altman, claiming they committed fraud and breached contractual agreements while trying to restructure OpenAI as a corporation.
In their statement, OpenAI noted that the recent submission aligns with Elon Musk’s persistent behavior of causing distress or discomfort.
Hollywood Inc.
The ongoing court case between Elon Musk and OpenAI might shape the future trajectory of a notable figure in the realm of artificial intelligence.
In simpler terms, it’s been stated in lawsuits against companies founded by Elon Musk that ChatGPT dominates around 80% of the market for generative AI chatbots, while Grok, developed by xAI, has only a minimal portion of the market share.
In simpler terms, the lawsuit states that because Apple and OpenAI have a unique partnership, ChatGPT is the sole AI chatbot with access to user prompts from billions of iPhones. This advantage over competitors using similar generative AI chatbots in their apps makes it challenging for them to expand and develop innovatively.
The legal documents filed by Elon Musk’s companies state that xAI sought to seamlessly link Grok with Apple’s software environment, iOS, but were denied this opportunity. Users can still interact with other AI chatbots on iPhones via a web browser or app download, however, these methods don’t offer the same degree of functionality, user-friendliness, integration, or access to user prompts as ChatGPT, when directly integrated with Apple.
The legal action against Apple additionally alleges that they favor Apple-associated AI chatbot apps over competing ones available on the App Store, resulting in a less prominent position for these competitor apps.
Apple did not immediately respond to The Times’ request for comment on the lawsuit.
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If the Department of Justice wins its legal case against Apple, there’s a possibility that consumers might enjoy reduced prices for app subscriptions and purchases due to increased competition in the market.
A few weeks ago, Musk stated on platform X that he intended to sue Apple, which ignited a heated exchange on social media between him and Altman from OpenAI.
Apple, in a previous statement to Bloomberg, mentioned they often work with numerous developers to enhance the visibility of apps within rapidly growing categories. This involves showcasing thousands of apps across various platforms such as charts, personalized suggestions generated by algorithms, and lists carefully curated by expert teams based on unbiased standards.
“The App Store is designed to be fair and free of bias,” Apple told Bloomberg.
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2025-08-25 23:01