Elon Musk’s companies, xAI and X, have filed a lawsuit against Apple (AAPL) and OpenAI (OPAI.PVT) in Texas, alleging unfair competition. The lawsuit argues that the partnership between Apple and OpenAI to integrate the ChatGPT chatbot into Apple’s platforms constitutes a violation of antitrust laws, specifically the Sherman Act. Musk claims this collaboration creates a monopolistic environment, with Apple controlling 65% of the smartphone market and OpenAI dominating 80% of AI chatbots.
The suit asserts that users are forced to choose ChatGPT, limiting competition and user choices for AI chatbots, such as xAI’s Grok. Musk’s companies argue that this exclusivity stifles innovation, as generative AI chatbots depend on user interaction for improvement. They seek a court order to prevent the partnership’s execution and unspecified damages. This legal action highlights ongoing tensions in the tech industry regarding competition and market dominance, particularly in the evolving AI space.
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