Elon Musk's AI startup xAI is suing Apple and OpenAI, accusing them of locking up the AI market through exclusive partnerships. The case could raise major antitrust questions around artificial intelligence.
The lawsuit, filed in federal court in Texas, claims Apple and OpenAI are shutting out competitors by making exclusive deals that keep rivals like xAI from gaining a foothold. xAI alleges that Apple's deep integration of ChatGPT into its operating systems for iPhones, iPads, and Macs leaves no room for other AI apps like Musk's Grok or the X app to get similar visibility in the App Store. According to the suit, if Apple hadn't partnered with OpenAI, it would have no reason to disadvantage xAI's products in the marketplace. xAI is seeking billions in damages.
An OpenAI spokesperson dismissed the claims, calling the lawsuit part of a ongoing pattern of harassment. Apple has not commented.
Lawsuit could set new ground rules for AI antitrust
Legal analysts say the case could become a landmark for how US courts handle antitrust issues in the rapidly growing AI sector. Christine Bartholomew, a law professor at the University at Buffalo, described the case as a "canary in the coal mine" for future antitrust battles over artificial intelligence. A key question is whether courts will recognize AI services as a distinct, clearly defined market - a threshold that would be crucial for antitrust law to apply.
If the court finds such a market exists, it could reshape the rules and competitive landscape for the entire industry. Experts also note Apple has possible defenses: the company could argue that integrating ChatGPT is a legitimate business move in a fast-changing tech market.
Herbert Hovenkamp, a professor at the University of Pennsylvania, adds that Apple might cite security and operational reasons for giving OpenAI exclusive access to its platforms. The outcome could determine how far tech companies can go in opening their platforms to select AI partners as generative AI becomes mainstream. Meanwhile, recent reports suggest Apple may also be looking to work more closely with Google's AI technology in the future.
