Elon Musk filed a bombshell lawsuit against Apple and Sam Altman’s OpenAI on Monday, accusing the two tech giants of illegally colluding to stifle xAI and other artificial intelligence rivals.
The antitrust suit filed in Texas federal court alleges that OpenAI’s ChatGPT is the “only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones” as a result of a partnership with Apple.
That, according to the suit, gives ChatGPT a massive and unfair leg up in its battle against Musk’s xAI, the fast-growing firm behind the snarky Grok chatbot. The suit likewise claims that Apple has been burying Grok and other rival chatbots lower in its App Store rankings, making them less visible for downloads.
“In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots,” the lawsuit claims.
If not for the “exclusive deal” between the two firms, Apple would have no reason not to heavily promote X and Grok in its online store, according to the lawsuit. Musk’s attorneys want to block what they describe as the “anticompetitive scheme” and are seeking billions of dollars in damages.
Meanwhile, OpenAI benefits by gaining access to user data and prompts that can be used to improve ChatGPT in a way that its rivals cannot, the suit alleges.
Both Apple and OpenAI are referred to as “monopolists” in the suit.
It also alleges that the rise of AI and so-called “super apps,” such as the one Musk has long promised to deliver, are an “existential threat” to Apple’s business because they could offer customers access to features that were previously tied to specific devices like the iPhone.
The lawsuit — which looks like an attempt to mimic the Justice Department’s successful suit against Apple’s $20 billion-a-year deal to make Google the default search engine on its Safari web browser –emerged just weeks after Musk publicly threatened legal action over Apple’s alleged refusal to feature his companies in the App Store.
In a terse emailed statement to The Post, an OpenAI spokesman said, “This latest filing is consistent with Mr Musk’s ongoing pattern of harassment.”
Representatives for xAI and Apple did not immediately return requests for further comment. Apple has previously defended the fairness of its partnership with OpenAI, saying it partners with the best companies to provide the best user experience.
Musk first implied last month that Apple was suppressing his apps at the behest of OpenAI – who Musk is already suing in separate proceedings for allegedly abandoning its charitable mission while pursuing a for-profit restructuring.
“Hey @Apple App Store, why do you refuse to put either X or Grok in your ‘Must Have’ section when X is the #1 news app in the world and Grok is #5 among all apps?” Musk wrote in an X post on Aug. 12. “Are you playing politics? What gives? Inquiring minds want to know.”
In another post, Musk alleged at the time that Apple was “behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
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