Mon, 25 Aug 2025

Mon, 25 Aug 2025 Musk firms sue Apple and OpenAI, alleging they hurt competition

The lawsuit takes aim at Apple's decision to integrate ChatGPT into the operating systems of its smartphones.

* Two Elon Musk-backed companies, X and xAI, have sued Apple and OpenAI in US federal court.
* The lawsuit claims that Apple's exclusive deal with OpenAI, which integrates ChatGPT into iOS operating systems, is illegal and stifles competition.
* The deal allegedly gives OpenAI access to the prompts and activity of millions of Apple customers, giving it an unfair advantage over competitors.
* Musk's companies claim that the deal has reduced innovation and quality in the generative AI chatbot market, and has allowed Apple and OpenAI to maintain their monopolies.
* The lawsuit alleges that OpenAI controls around 80% of the US generative AI chatbot market, while Apple claims around 65% of the smartphone market.
* This is not the first time Apple's app store practices have been challenged in court - it has previously faced anti-monopoly lawsuits over its tie-ups with other tech giants.
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