Elon Musk’s xAI Accuses Apple, OpenAI Of Anti‑Competitive Practice: Report

In a new legal confrontation, xAI, the artificial intelligence company founded by billionaire entrepreneur Elon Musk, has reportedly sued both Apple Inc. (AAPL) and OpenAI on Monday in a U.S. federal court in Texas. 

According to a Reuters report, the complaint alleges the two technology giants conspired to suppress competition in the AI space.

Apple stock inched 0.4% higher on Monday mid-morning. On Stocktwits, retail sentiment toward the stock shifted to ‘bearish’ from ‘extremely bearish’ territory the previous day amid ‘extremely low’ message volume levels.

According to the complaint, Apple’s close relationship with OpenAI has unfairly tilted the playing field, making it difficult for Musk’s products, including the Grok chatbot and the X app, to gain visibility within the App Store ecosystem.

"If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store," the court filing showed. 

The filing argues that Apple and OpenAI have effectively ‘locked up’ access to markets by favoring ChatGPT over competing AI technologies, said the report. 

In early August, Musk had claimed that Apple’s App Store policies effectively block any AI app from reaching the top spot except ChatGPT. "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation," he said on X.

Grok, a part of xAI, was first introduced as an AI chatbot on the X platform in 2023, followed by the launch of a dedicated Grok app in January of this year.

Also, Musk’s artificial intelligence venture is planning a new funding round that may value the company between $170 billion and $200 billion.

Also See: Aehr Test Stock Surges On Fresh AI Chip Orders From Top Hyperscaler: Retail Shows Optimism

For updates and corrections, email newsroom[at]stocktwits[dot]com.