Two companies backed by Elon Musk, X and xAI, have filed a lawsuit against Apple and OpenAI in the United States, alleging that the two firms have engaged in illegal collaboration to hinder competition. The plaintiffs claim that Apple’s integration of OpenAI’s chatbot into its smartphone operating systems constitutes an exclusive agreement that violates competition laws.
The lawsuit follows Musk’s earlier comments suggesting that Apple favored OpenAI in its app store rankings. In response to the legal action, OpenAI characterized the lawsuit as part of a “pattern of harassment” from Musk, while Apple has not yet issued a statement regarding the case.
Musk and OpenAI’s CEO, Sam Altman, co-founded OpenAI in 2015 but have since become rivals. Musk has accused Altman of straying from the organization’s mission of prioritizing public good, especially as Musk has developed his own AI companies, including xAI.
The lawsuit, which has been filed in federal court in Texas, argues that the exclusive deal between Apple and OpenAI lacks a valid business rationale. Musk’s companies contend that this arrangement not only hinders their ability to compete but also provides OpenAI with access to the data and activities of millions of Apple customers. They allege that this partnership has given the ChatGPT app an unfair advantage in the app store, leading to increased downloads compared to other generative AI chatbots.
According to the lawsuit, OpenAI holds approximately 80% of the generative AI chatbot market in the U.S., while Apple’s market share in smartphones is about 65%. Apple has faced multiple legal challenges regarding its app store practices, including a notable antitrust lawsuit involving Google. The company has previously stated that its app store policies are fair and unbiased, yet generative AI competitors like DeepSeek and Perplexity have reportedly succeeded in the App Store rankings at various times since 2024. Additionally, Apple is purportedly in discussions with Google to potentially incorporate the Gemini chatbot into its voice assistant, Siri.
Source: https://www.bbc.com/news/articles/cly6xjg9nnyo?at_medium=RSS&at_campaign=rss