Elon Musk’s xAI Sues Apple & OpenAI for Conspiring Against Competition, Including the Grok App

The recent rise of OpenAI’s ChatGPT app to the pinnacle of the Apple App Store rankings has seemingly provoked Elon Musk. In response, he has initiated legal proceedings against both Apple and OpenAI via his artificial intelligence venture, xAI, in a Texas federal court. The lawsuit alleges that the two companies are colluding unlawfully to stifle competition, specifically targeting xAI’s ability to gain market traction. Musk had previously accused Apple of favoritism towards OpenAI’s ChatGPT app, vowing to challenge this behavior through legal channels, a promise that he has now fulfilled.

Allegations of an Exclusive Agreement Between Apple and OpenAI

Regardless of whether the lawsuits are dismissed as frivolous by commentators, recent reports from Reuters have revealed allegations that Apple and OpenAI have created a ‘locked’ marketplace that insulates their monopolies and hinders innovative competitors like xAI. The lawsuit posits that there is a covert arrangement between Apple and OpenAI that restricts rivals—such as xAI’s Grok—from rising in the App Store’s rankings. Due to these perceived injustices, Musk is pursuing billions in damages.

In a swift rebuttal, OpenAI responded by characterizing xAI’s lawsuit as part of Musk’s continuous pattern of harassment, as stated by a company spokesperson. Sam Altman, the CEO of OpenAI, has previously criticized Musk’s hypocrisy, noting that Musk had built a system on X that apparently manipulates the platform for his own profit and interests.

While Apple has not made an official statement regarding this latest legal endeavor, the tech giant is no stranger to legal battles over its App Store policies. Notably, Apple has been embroiled in an extended lawsuit with Epic Games, the creator of Fortnite. This conflict arose after Fortnite was removed from the App Store, although a ruling later compelled Apple to allow for competition regarding third-party payment options for apps.

For further details, you can refer to the news source: Reuters.

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