Musk xAI sues Apple and OpenAI, alleges monopoly

Musk's xAI is suing Apple and OpenAI, accusing the two of teaming up to curb competition, in a lawsuit that is a continuation of a long-running dispute between Musk and OpenAI founder Sam Altman, who have publicly disliked each other several times before.


On August 23, Musk's X Corp. and xAI filed a complaint in the U.S. District Court for the Northern District of California, alleging that Apple's partnership with OpenAI is designed to consolidate Apple's monopoly in the smartphone market and impede competition and innovation in the AI field. The complaint alleges that Apple's partnership with OpenAI has resulted in the deep integration of ChatGPT into Apple's systems, making it difficult for other AI companies to compete on a level playing field on Apple's platform, and preventing them from even making it to the top of Apple's app store. Musk has publicly denounced this model of collaboration between OpenAI and Apple as extremely detrimental to competition in the marketplace.


Musk has a long history of conflict with OpenAI founder Sam Altman. Musk was the co-founder and co-chairman of OpenAI before leaving due to philosophical differences, and he has publicly exchanged barbs with Altman on numerous occasions. Musk has sued to prevent OpenAI from transforming into a for-profit company, and has also offered to buy OpenAI for $97.4 billion, which was rejected. In this lawsuit, Musk claims that Apple's partnership with OpenAI is a "monopoly" and is trying to break it through legal means.


Apple's partnership with OpenAI began in June 2024, and the two companies plan to launch collaborative features in December 2024," Musk said. However, Musk has argued that the partnership is extremely detrimental to competition in the marketplace, and has even taken to social media to accuse the partnership of "stifling innovation". Apple and OpenAI have yet to comment on the lawsuit.


The lawsuit is not only about business competition, but also about the future of AI. Musk's xAI is aggressively expanding its business in an attempt to gain a foothold in the AI market. However, it's clear that Apple's partnership with OpenAI is putting a lot of pressure on xAI. Musk is hoping to break this monopoly through legal means to give xAI more room to grow. The outcome of this lawsuit will not only affect the development of xAI, but also may have a profound impact on the competition pattern of the entire AI industry.

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