Elon Musk's xAI Sues Apple and OpenAI Over App Store Rankings
Elon Musk’s AI company, xAI, has filed a lawsuit against Apple and OpenAI in a Texas federal court. The suit accuses the two tech giants of conspiring to block competition in the AI space by manipulating App Store rankings and securing market dominance.
The complaint alleges that Apple and OpenAI have worked "in tandem" to maintain monopolies, preventing competitors like xAI from gaining traction. xAI seeks to put an end to what it calls an "anticompetitive scheme" and is pursuing billions in damages.
Apple and OpenAI’s Partnership
Earlier in June 2024, Apple announced a partnership with OpenAI to integrate ChatGPT into iOS, iPadOS, macOS, Siri, and Apple's writing tools. According to the lawsuit, this exclusive arrangement gives ChatGPT unique access to billions of user prompts from hundreds of millions of iPhone users.
This level of exposure, the suit claims, creates an unfair advantage that makes it difficult for other AI chatbots and super apps powered by generative AI to scale and innovate effectively.
Claims of App Store Bias
xAI argues that Apple is favoring OpenAI by "deprioritizing" competing AI apps in its App Store rankings. Elon Musk has publicly stated that Apple’s behavior blocks any AI app other than ChatGPT from reaching the top spot, which he describes as an antitrust violation.
On August 11, Musk announced on X (formerly Twitter) that xAI would take "immediate legal action" against Apple for this alleged prejudice.
Responses From OpenAI and Apple
An OpenAI spokesperson dismissed the lawsuit as part of Musk's "ongoing pattern of harassment." OpenAI CEO Sam Altman also responded on X, suggesting Musk’s claim was ironic given Musk’s own past actions to manipulate platforms for his benefit.
A community note added to Musk’s post pointed out that other AI apps like DeepSeek and Perplexity have reached the top of Apple’s App Store rankings even after the OpenAI deal was announced, challenging Musk’s allegations.
Apple has not publicly commented on the lawsuit as of now.
Background: Musk and OpenAI
- Elon Musk was one of the original founders of OpenAI when it started as a nonprofit.
- Last year, Musk sued OpenAI and CEO Sam Altman over alleged contract breaches, aiming to block OpenAI’s shift toward a for-profit model.
- xAI itself has updated its status and is no longer registered as a public benefit corporation.
- In February, Musk and investors made a $97.4 billion bid to acquire the nonprofit that owns OpenAI.
- Recent court filings reveal Musk asked Meta CEO Mark Zuckerberg to support his bid.
This lawsuit highlights ongoing tensions in the AI industry around competition, platform control, and market access. For IT professionals and developers, it’s a reminder of how platform policies and partnerships shape the accessibility and growth of AI applications.
For those interested in learning more about AI tools and development, exploring up-to-date AI courses can provide practical insights and skills.
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