00:00Elon Musk's artificial intelligence startup XAI has filed a lawsuit against Apple and OpenAI,
00:06alleging that the two companies are illegally hindering competition in the artificial intelligence industry.
00:13The federal suit filed in Texas accuses them of violating antitrust laws and locking up markets to maintain their monopolies
00:21and prevent innovators like X and XAI from competing.
00:24The lawsuit claims Apple's June 2024 partnership with OpenAI gives ChatGPT exclusive access
00:31to billions of user prompts from hundreds of millions of iPhones, making it the only AI chatbot with that advantage.
00:39Musk's companies claim Apple and OpenAI have colluded to prevent iPhone users from picking their own AI assistant.
00:46If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently
00:52featuring the X app and the Grok app in its App Store, the lawsuit asserts.
00:56Musk has been vocal against Apple on his social media platform X,
01:00accusing Apple's App Store of manipulating App Store rankings to unfairly promote OpenAI's apps over competitors
01:07and threatened to sue earlier this month.
01:09Apple is the gateway to the Internet for half of America.
01:13They are making it impossible for any other AI company to succeed by relentlessly promoting OpenAI in every way possible,
01:20Musk posted to X on August 12th.
01:23Apple has not responded to requests for comment pertaining to the lawsuit.
01:26Earlier this month, a spokesperson with Apple told Bloomberg its App Store is designed to be fair and free of bias.
01:33We feature thousands of apps through charts, algorithmic recommendations,
01:37and curated lists selected by experts using objective criteria.
01:41Our goal is to offer safe discovery for users and valuable opportunities for developers,
01:46collaborating with many to increase app visibility in rapidly evolving categories,
01:51the spokesperson told Bloomberg in an email.
01:54A spokesperson with OpenAI responded to the lawsuit saying,
01:58this latest filing is consistent with Mr. Musk's ongoing pattern of harassment,
02:02the OpenAI spokesperson said Monday in a statement, as reported by the Wall Street Journal.
02:07Musk is seeking billions of dollars in damages and a federal injunction.
02:11For Straight Arrow News, I'm Lauren Keenan.
02:14If you want more on this story, download the Straight Arrow News app or visit san.com.
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