Elon Musk’s AI startup, Xai, has initiated legal action against OpenAI and Apple, accusing them of anti-competitive practices. This lawsuit, submitted on Monday in a Texas court, alleges a “conspiracy to monopolize the smartphone and generative AI chatbot market.”
Earlier this month, Musk had hinted at legal action against Apple and OpenAI, criticizing ChatGPT and claiming that other AI companies faced barriers to reaching the top of the App Store. Musk’s Xai has developed a chatbot called Grok.
The lawsuit challenges a significant collaboration between Apple and OpenAI. That partnership was announced last year, allowing Apple to integrate OpenAI’s AI functionality into its operating system. Musk’s legal action aims to disrupt one of Apple’s major ventures into AI and OpenAI’s standout partnership, accusing them of “restricting the market.”
According to the complaint, “The defendants have engaged in unlawful agreements and conspiracies to exploit Apple’s monopoly in the US smartphone industry while upholding OpenAI’s dominance in generative AI chatbots.” They are also seeking “billions in damages.”
OpenAI has dismissed Musk’s claims, characterizing the lawsuit as part of his ongoing vendetta against the company. An OpenAI representative stated, “This latest filing is indicative of Musk’s persistent pattern of harassment.”
Apple has not yet responded to inquiries for comment.
This lawsuit marks a new chapter in the longstanding feud between Musk and Altman. The two tech titans co-founded OpenAI in 2015 but have increasingly drifted apart, frequently engaging in legal disputes.
Musk departed from OpenAI after expressing interest in taking control of the organization in 2018, subsequently launching several lawsuits concerning its transition to a for-profit model. Altman and OpenAI have consistently rebuffed Musk’s criticisms, portraying him as a vindictive former associate.
“It’s unfortunate to see this from those we’ve held in high regard. He urged us to push our limits, but when we indicated we might fail, he formed competitor companies and made significant strides towards OpenAI’s mission without him.”
Tensions between Altman and Musk escalated earlier this month following Musk’s accusations directed at Apple. Musk claimed that Apple was manipulating App Store rankings to disadvantage other AI competitors, prompting a public exchange of challenges between the two tech leaders.
“It’s an unexpected assertion given that Elon claims to manipulate X for personal gain while undermining individuals he opposes,” Altman wrote in response to Musk’s claims about Apple’s favoritism toward OpenAI.
Currently, OpenAI is concentrating on a $500 million valuation, poised to become the most valuable private entity at $350 billion, surpassing Musk’s SpaceX, which holds the current title.
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