Elon Musk’s xAI Takes Legal Action Against Apple and OpenAI for Alleged AI Monopoly and App Store Bias

Elon Musk’s AI startup, xAI, has launched a lawsuit against Apple and OpenAI, alleging collusion to marginalize competitors in the burgeoning AI sector. Filed on August 25 in a Texas federal court, the lawsuit claims Apple provides OpenAI an unfair edge by embedding ChatGPT into its devices, effectively excluding xAI’s Grok chatbot, despite its high user ratings. Musk asserts Apple’s App Store manipulates rankings to disadvantage Grok. xAI argues this partnership creates a “duopoly,” breaching U.S. antitrust laws, specifically the Sherman Act, and seeks billions in damages. OpenAI dismissed these claims as typical harassment from Musk. Legal experts believe this lawsuit could redefine competition law in the AI landscape. Musk, a co-founder of OpenAI, has voiced dissatisfaction over its evolution from nonprofit to for-profit and aims to merge xAI with his social media platform X into a comprehensive “super app.” The case parallels existing antitrust issues involving Google and Apple.

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