AI
xAI sues Apple over “anti-competitive” ChatGPT deal
xAI is launching a federal lawsuit against Apple and OpenAI, claiming their exclusive ChatGPT integration on iPhones creates a monopoly that sidelines rival AI chatbots.
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Elon Musk’s xAI filed a federal lawsuit Monday against Apple and OpenAI, claiming their partnership to integrate ChatGPT into iPhones creates an anti-competitive monopoly that blocks rival AI chatbots.
The complaint, filed in Texas federal court, argues Apple’s exclusive deal prevents iPhone users from accessing alternatives like xAI’s Grok chatbot while giving OpenAI unfair advantages from billions of user interactions.
Key Facts:
- xAI and parent company xAI Corp. filed the lawsuit in US District Court for the Northern District of Texas
- The complaint alleges Apple manipulates App Store rankings to favor OpenAI products over competitors
- xAI claims the exclusive partnership gives OpenAI access to billions of user prompts that improve its AI systems
- Apple has previously denied manipulating App Store rankings
- OpenAI called the lawsuit part of Musk’s “ongoing pattern of harassment”
The lawsuit centers on Apple’s decision to make ChatGPT the default AI assistant for iPhone users, effectively shutting out competing chatbots from the lucrative mobile market.
xAI argues this arrangement violates antitrust laws by creating an artificial barrier that prevents consumers from choosing alternative AI services.
Beyond the exclusivity claims, xAI alleges Apple actively manipulates its App Store algorithms to suppress non-OpenAI chatbot apps in search results and rankings. This practice allegedly extends the anti-competitive advantage beyond just the default integration.
The timing coincides with growing scrutiny of Big Tech partnerships in the AI space. Apple rolled out its ChatGPT integration as part of iOS updates, positioning the OpenAI service as the primary AI assistant for Siri and other system functions.
An OpenAI spokesperson dismissed the legal action, stating the filing represents Musk’s “ongoing pattern of harassment.” Apple has not yet responded to requests for comment on the specific allegations.
Why it matters: This lawsuit could reshape how tech giants structure AI partnerships and determine whether exclusive deals violate competition laws. For iPhone users, the outcome might expand AI chatbot choices beyond ChatGPT.
Do you think Apple’s exclusive ChatGPT integration stifles competition, or is it just smart business? Should iPhone users have more AI chatbot options to choose from? Let us know down below in the comments.
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