Elon Musk’s xAI resolves claims against Apple over AI competition

The latest market report highlights that Elon Musk’s xAI and X Corp. stated they resolved an antitrust lawsuit against Apple Inc. that accused the iPhone maker of favoring OpenAI’s ChatGPT over other chatbot makers.

In a Monday filing the two firms, both owned by Musk’s SpaceX, asked for approval from a federal judge in Texas to voluntarily dismiss the case.

That stated, the firms stated the claims against OpenAI in the same lawsuit have not been settled. The suit accuses the AI firm of maintaining an unlawful monopoly over the chatbot market through anti-competitive conduct.

Musk’s firms filed the suit in August, seeking billions of dollars over claims that Apple’s decision to integrate OpenAI into the iPhone’s operating system inhibits competitive pressure and innovation within the AI industry and harms consumers by depriving them of choice.

Representatives for Musk’s firms and Apple and OpenAI didn’t immediately return requests for comment.

Apple and OpenAI have denied the claims, arguing that their arrangement — which let users access ChatGPT results within Siri and use the AI technology as part of certain iPhone features — was never exclusive. OpenAI additionally described the lawsuit as part of a pattern of harassment by Musk against the firm he co-founded and then left.

Much has changed since the lawsuit was filed.

Apple and OpenAI’s relationship has soured significantly in the two years since it was first announced. In May, Bloomberg noted that OpenAI was exploring legal options against Apple after failing to see anticipated benefits from their arrangement.

In July, Apple sued OpenAI for trade secret theft and accused the firm and its hardware chief of engaging in a coordinated campaign to steal information around upcoming products.

The case is X Corp. et al v. Apple Inc., US District Court, Northern District of Texas (Fort Worth).