Elon Musk’s xAI Sues Apple and OpenAI, Alleging Anticompetitive Collusion

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Elon Musk’s companies, X and xAI, filed a lawsuit against Apple and OpenAI on Monday, alleging that the two tech giants are colluding to stifle competition in the artificial intelligence sector. The lawsuit targets the recently announced partnership to integrate ChatGPT into Apple’s systems.


Key Highlights

The lawsuit marks a major escalation in the rivalry between the tech leaders:

  • Lawsuit Filed: X and xAI have filed a lawsuit against Apple and OpenAI.
  • Core Allegation: The lawsuit claims the two companies are colluding to stifle competition in the AI sector.
  • Key Partnership: The suit is centered on the partnership to integrate ChatGPT into Apple’s systems.
  • Ongoing Dispute: This is the latest in a series of public and legal disputes between Elon Musk and OpenAI.

A ‘Desperate Bid to Protect a Monopoly’

The lawsuit alleges that Apple is trying to protect its dominance in the smartphone market by partnering with a monopolist in generative AI. “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 reads. This follows a post by Musk on X earlier this month where he claimed it was “impossible for any AI company besides OpenAI to reach #1 in the App Store.”


The Latest in a Long-Running Feud

This legal action is the latest chapter in a long series of disputes between Musk and OpenAI CEO Sam Altman. Musk, a co-founder of OpenAI, has previously sued to block the company’s transition into a for-profit entity. He also submitted an unsolicited bid to take over OpenAI for $97.4 billion, which the company rejected.


Looking Ahead

The partnership between Apple and OpenAI was announced last June, with collaborative features expected to be released to the public in December. A legal challenge to this major partnership could impact the global availability and integration of AI tools that are widely used by consumers and businesses in the MENA region. Apple and OpenAI did not immediately respond to a request for comment on the lawsuit.

Source: TechCrunch

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