"Elon Musk's AI company xAI sued Apple and ChatGPT maker OpenAI in federal court Monday, alleging they conspired to freeze out competition in both the smartphone and AI chatbot markets. But xAI's lawyers face an uphill battle in proving that Apple's defaulting to ChatGPT on iOS harms consumers. Apple has struggled to add its own advanced AI features-including a chatbot-to its operating systems for iPhone, iPad, and Mac. At its June 2024 Worldwide Developers Conference (WWDC), Apple instead announced an exclusive agreement with OpenAI, making ChatGPT the default chatbot option on its devices."
"Musk and xAI argue the deal hurts rivals, including xAI's Grok chatbot. "Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing," reads the lawsuit, which was filed in Texas Northern District Court. "Plaintiffs bring this suit to stop Defendants from perpetrating their anticompetitive scheme and to recover billions in damages.""
Apple made an exclusive deal with OpenAI at WWDC 2024 to set ChatGPT as the default chatbot on iPhone, iPad, and Mac. xAI filed a federal lawsuit in the Northern District of Texas alleging Apple and OpenAI conspired to lock up markets and harm rivals like xAI's Grok, seeking billions in damages. iPhone users must download Grok as a standalone app, and xAI seeks the ability for users to easily select any chatbot. Antitrust experts note courts focus on consumer harm—price and quality—making such cases difficult to win.
Read at Fast Company
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