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Elon Musk files lawsuit against Apple and OpenAI, alleging AI market Monopoly

Eugene Okyere by Eugene Okyere
1 year ago
in Tech
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Elon Musk announces XChat rollout, but security doubts persist

Chief Executive of SpaceX and Tesla Motors Elon Musk arrives at the 2014 Vanity Fair Oscars Party in West Hollywood, California March 2, 2014. REUTERS/Danny Moloshok (UNITED STATES - Tags: ENTERTAINMENT BUSINESS HEADSHOT)(OSCARS-PARTIES) - RTR3FY5U

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Elon Musk has sued Apple and OpenAI, claiming that the two companies are colluding to stifle competition in the artificial intelligence (AI) sector. The lawsuit, filed in Texas on Monday, alleges that a partnership between Apple and OpenAI unfairly sidelines Musk’s AI company, xAI, and its chatbot, Grok.

The complaint argues that Apple’s exclusive agreement with OpenAI provides ChatGPT preferential treatment on iPhones, iPads, and Macs, limiting users’ access to other AI chatbots. Musk contends that Apple is leveraging its significant smartphone market share—approximately 65 percent—to hinder xAI’s ability to compete effectively.

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ICYMI: Chipolo unveils first Rechargeable Bluetooth Trackers: Loop and Card

This legal action follows Apple’s announcement in 2024 to fully integrate ChatGPT into its devices. Musk claims this integration makes it nearly impossible for xAI to gain visibility in Apple’s App Store, even if users show a preference for alternatives like Grok. Earlier this month, Musk indicated he might take legal action against Apple for what he described as unfair business practices.

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As of now, neither Apple nor OpenAI has commented on the lawsuit. However, OpenAI CEO Sam Altman recently criticized Musk, suggesting that the billionaire often uses his platform, X, to manipulate situations in his favor while attacking competitors.

Despite the lawsuit, Apple’s stock rose by 0.6 percent on Monday, and Tesla, another company owned by Musk, saw an increase of 1.2 percent. OpenAI is not publicly traded, and xAI remains a nascent startup competing against established players like Microsoft-backed OpenAI and China’s DeepSeek.

SOURCE: GBCGHANAONLINE

Eugene Okyere

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