Elon Musk sues Apple, OpenAI over market dominance
Following criticism with Apple and OpenAI over the latter’s position in the App Store, Elon Musk is taking his accusation over anti-competitive practices to court.
According to Musk, the integration of OpenAI’s chatbot into Apple’s operating systems violates competition law by creating an exclusivity agreement. He argued that the deal between Apple and OpenAI enables them to dominate the AI chatbot market and prevents innovative companies like X and xAI from becoming successful.
XAI, which launched less than two years ago, is not only competing with Microsoft-backed OpenAI, but also with the Chinese start-up DeepSeek.
While Apple has yet to comment, OpenAI branded the lawsuit as part of Musk’s ongoing pattern of intimidation.
The rivalry between Musk and OpenAI CEO Sam Altman stems from their differing visions for the company they co-founded in 2015. Musk believes that Altman has taken OpenAI too far from its original mission as a non-profit entity. This tension escalated when Musk claimed that Apple’s practices prevent AI companies other than OpenAI from achieving top positions in the App Store.
In addition, Musk is suing OpenAI and Altman in federal court to prevent OpenAI from transitioning from a non-profit to a for-profit organisation. It once again highlights the ongoing conflict between Musk and Altman over the leadership of OpenAI.
Apple’s App Store has often been the subject of legal challenges. A notable case, brought by Epic Games, the developer of Fortnite, resulted in a court order requiring Apple to allow more competition for payment options in apps.
The lawsuit against Apple and OpenAI underscores the dominant position these companies hold in their respective markets. OpenAI controls about 80% of the generative AI chatbot market in the US, while Apple holds around 65% of the smartphone market share.
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