Musk's xAI Resolves Antitrust Lawsuit Against Apple Over Chatbot Competition
Elon Musk’s companies, X Corp. and xAI — both owned by SpaceX — have resolved an antitrust lawsuit against Apple Inc., which had accused the iPhone maker of favoring OpenAI’s ChatGPT over other chatbots in its operating system integration. The case was voluntarily dismissed with a request for judicial approval from a Texas federal court. While this settlement resolves claims against Apple, it does not extend to allegations made against OpenAI regarding monopolistic behavior and anti-competitive practices. The lawsuit sought billions of dollars, arguing that Apple’s partnership with ChatGPI stifled competition in the AI industry and limited consumer choice. Both Apple and OpenAI denied these claims, stating their collaboration was non-exclusive. Relations between Apple and OpenAI have deteriorated significantly since 2024, culminating in a trade secret theft lawsuit filed by Apple against OpenAI earlier this year. The resolution of xAI’s case with Apple marks an important development amid ongoing tensions within the AI sector but leaves unresolved broader antitrust concerns involving OpenAI.
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