Elon Musk is suing Apple and Openai, claiming there is an anti-competitive arrangement that gives Openai's ChatGpt an unfair advantage on the iPhone. The lawsuit, filed in federal court in Fort Worth, Texas, on behalf of mask companies X and XAI, seeks billions of dollars in damages. The lawsuit argues that by integrating Openai into the IOS operating system, Apple will hamper competition and innovation in the AI industry and limit consumer choices.The lawsuit argues that Apple's partnership with Openai makes it nearly impossible for other chatbot makers, including Musk's own Grok, to reach the top of the App Store chart. The legal action sets the stage for a major court battle between Musk, one of the richest individuals in the world, and Apple, one of the world's most valuable companies.The lawsuit follows Musk's recent social media post, which he questioned whether Apple is “politics” by not promoting his products. Apple responded that the App Store was “fair and unbiased,” but Openai CEO Sam Altman suggested that Musk's complaints were the result of his own management style at X.
Elon Musk is angry at ChatGpt's integration on iPhone
Apple's collaboration with OpenAI includes integrating the most downloaded free iPhone apps on US ChatGpt with the latest iPhone. The lawsuit argues that the “exclusive arrangement” has made ChatGpt the only AI chatbot integrated into the iPhone, and that companies “confine the market to maintain their monopoly and prevent innovators like X and Xai from competing.”An Openai spokesman calls the lawsuit “conforms to Musk's ongoing pattern of harassment.” Apple has not commented on the lawsuit yet.This is not the first time Apple has faced legal challenges surrounding the App Store. The company has a history of regulators and companies like Epic Games claiming the App Store is illegally competing. Elon Musk's lawsuit allegations reflect what was filed in March 2023 by the U.S. Department of Justice, which sued Apple for allegedly monopolizing the smartphone market. The government lawsuit argued that Apple would use its power to make it easier for consumers to switch phones to block “super apps.” This is a argument similar to Musk's claim that Apple's actions stunt the growth of “all apps” like X.In addition to the financial damages, Elon Musk's lawsuit seeks a court order to end the “illegal arrangement.”However, the nature of Apple's dealing with Openai is the point of competition. Eddy Cue, Apple's Senior Vice President of Services, said in court testimony from unrelated cases that the partnership is non-exclusive and that Apple is free to integrate other AI apps.
