Elon Musk’s companies, xAI and X, have filed a significant antitrust lawsuit against Apple and OpenAI, claiming the giants formed an illegal alliance to hinder competition in the AI and smartphone sectors. The 61-page lawsuit, submitted in federal court in Texas, alleges that an exclusive agreement between Apple and OpenAI makes ChatGPT the sole generative AI chatbot on Apple’s iPhone, sidelining competitors like xAI’s Grok. The complaint highlights that Apple controls 65% of the U.S. smartphone market, while OpenAI commands at least 80% of the generative AI chatbot market. The lawsuit accuses Apple of skewing App Store rankings to favor ChatGPT and of delaying Grok updates. Musk’s companies seek billions in damages and a permanent injunction against these practices. The tensions escalated following a contentious exchange between Musk and OpenAI CEO Sam Altman, stemming from past conflicts as co-founders of OpenAI before Musk’s exit in 2018.
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