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Elon Musk’s AI startup, xAI, has initiated a lawsuit in a federal court in Texas against Apple and OpenAI, alleging a conspiracy to hinder fair competition in the AI industry, according to Reuters. The lawsuit claims that Apple and OpenAI have “secured markets to sustain their monopolies and prevent innovators like X and xAI from competing.”
The complaint states that Apple’s partnership with OpenAI, which has incorporated ChatGPT into iPhones, iPads, and Macs, has distorted the competitive landscape unfairly. It argues, “Without its exclusive agreement with OpenAI, Apple wouldn’t have any reason to avoid more prominently featuring the X app and the Grok app in the App Store.”
xAI is seeking billions of dollars in damages. In response, an OpenAI spokesperson said, “This recent filing is part of Mr. Musk’s ongoing pattern of harassment.” Apple has yet to comment. Earlier this month, Musk warned that Apple’s actions “make it impossible for any AI company except OpenAI to reach #1 in the App Store.”
Experts in antitrust law believe this case could be a turning point. Apple’s dominance in the smartphone market and its exclusive deal with OpenAI could bolster xAI’s claims. However, legal analysts suggest Apple might argue it operates in a competitive environment and has no obligation to support its rivals.
This lawsuit might become the first in U.S. courts to define the boundaries of the AI market. Christine Bartholomew, a law professor at the University at Buffalo, remarked, “It’s a warning sign for how courts will treat AI-related antitrust issues and how AI will be approached legally.”
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