Elon Musk’s AI startup, xAI, had earlier filed a lawsuit against Apple and OpenAI, accusing them of striking an exclusive deal that could limit competition. Now, the two companies are pushing back against the lawsuit as they argue in court that the claims made by Musk’s AI firm are unfounded and should be dismissed.
Apple defends its OpenAI deal, as accused by Musk’s xAI
The key point of the whole dispute is an agreement signed by Apple and OpenAI back in June 2024. The agreement, as stated by the tech giant, is about the integration of ChatGPT into iPhones, iPads, and Macs. It essentially gives the users of the aforementioned devices direct access to ChatGPT through system-level features.
Elon Musk’s xAI, on the other hand, argues that the deal unfairly sidelines its products on Apple devices. Grok chatbot and X (formerly Twitter) are affected because of the deal, discouraging Apple from promoting alternatives. Apple has denied these allegations by saying that the partnership is not exclusive. Its lawyers told the court that the company intends to work with other AI service providers in the future and that nothing in the deal prevents fair competition.
OpenAI urges the U.S. court to dismiss the lawsuit
OpenAI’s lawyers have urged the judge to dismiss the lawsuit. The company is also accusing Musk of using the legal system as a strategy against the company. The lawyers call the lawsuit a “campaign of lawfare.” They argued that this deal has not caused any harm to the competition, including xAI. They also stressed that the agreement is publicly known and the claims did not rise to the level of antitrust violations.
Interestingly, Musk was one of the co-founders of ChatGPT in 2015 as a nonprofit organization. But he later parted ways after disagreement with Sam Altman over the company’s direction. Musk is also suing Altman and OpenAI for shifting to a for-profit model.
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