Apple and OpenAI are being sued federally by Elon Musk’s artificial intelligence startup xAI, which claims the two firms conspired to stifle competition in the rapidly expanding AI field.
It alleges that Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” The case was filed in a federal court in Texas.
The lawsuit claims that the agreement unfairly affects other platforms like Musk’s Grok app and cites Apple’s exclusive integration of ChatGPT into iPhones, iPads, and Macs.
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According to the lawsuit, “Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store if it weren’t for its exclusive deal with OpenAI.”
xAI is allegedly requesting damages in the billions.
Apple and OpenAI’s responses
OpenAI reacted forcefully, with a representative stating:
“This most recent filing is in line with Mr. Musk’s persistent harassment pattern.”
Apple has not yet responded to the allegations in public.
Apple’s actions “make it impossible for any AI company besides OpenAI to reach #1 in the App Store,” Musk said earlier this month.
The significance of the case
According to legal experts, the disagreement may turn into the first significant case in U.S. courts to establish the parameters of competition in the AI sector.
It is “a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI,” according to Christine Bartholomew, a professor of law at the University at Buffalo.
