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Elon Musk’s AI startup xAI filed a lawsuit in Texas federal court against Apple and OpenAI, accusing them of conspiring to block competition in the AI market, according to Reuters. The suit alleges the companies locked up markets to maintain monopolies and prevent rivals like xAI from competing. The lawsuit alleges Apple’s integration of ChatGPT into its devices unfairly disadvantages xAI’s Grok app, which Musk says is being excluded from App Store promotion despite high user reviews. Legal experts said Apple’s dominant role in smartphones could strengthen xAI’s claims but noted Apple may argue its OpenAI partnership was a competitive business decision. Musk is also suing OpenAI and CEO Sam Altman in California to block the company’s shift from nonprofit to for-profit status. He originally cofounded OpenAI with Altman in 2015 as a nonprofit.

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00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Elon Musk's AI startup, XAI, filed a lawsuit in Texas federal court against Apple and OpenAI,
00:08accusing them of conspiring to block competition in the AI market, according to Reuters.
00:12It soon alleges the company's locked up markets to maintain monopolies and prevent rivals like
00:16XAI from competing. It also alleges Apple's integration of ChatGBT into its devices unfairly
00:22disadvantages XAI's Grok app, which Musk says is being excluded from App Store promotion
00:26despite high user reviews. The legal expert said Apple's dominant role in smartphones
00:30could strengthen XAI's claims, but noted Apple may argue its OpenAI partnership was a competitive
00:36business decision. Musk is also suing OpenAI and CEO Sam Altman in California to block the
00:41company's shift from non-profit to for-profit status. He originally co-founded OpenAI with
00:46Altman in 2015 as a non-profit. For all things money, visit Benzinga.com.
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