A new lawsuit from Elon Musk’s xAI startup poses a provocative question to hundreds of millions of Apple users: is your device part of an illegal AI monopoly? The suit, filed against both Apple and OpenAI, alleges that their partnership to integrate ChatGPT into iPhones and other devices constitutes an unlawful conspiracy to dominate the market.
The core of the argument is that by favoring OpenAI, Apple is using its massive power in the smartphone market to unfairly tip the scales in the AI chatbot market. Musk, whose own Grok chatbot competes with ChatGPT, claims this “unlawful agreement” locks out competitors and prevents a truly competitive ecosystem from developing. The legal action seeks to undo the deal and claims billions in damages.
The lawsuit is the latest manifestation of the deep-seated animosity between Musk and OpenAI CEO Sam Altman. The two tech moguls, who co-founded OpenAI, have been at odds for years, with their feud frequently spilling into public view through social media spats and legal threats. Musk has been a vocal critic of OpenAI’s commercial pursuits since his departure from the company.
OpenAI has dismissed the suit as another frivolous attack from a bitter rival, framing it as part of Musk’s “pattern of harassment.” However, the case raises significant questions about the power of platform owners like Apple to pick winners and losers in emerging technology fields. For consumers, the outcome could determine the range of AI choices available on their most-used devices.