Elon Musk's xAI Sues Apple and OpenAI Over AI Market Monopolization

Billionaire Elon Musk's artificial intelligence startup, xAI, has taken legal action against Apple and OpenAI, filing a lawsuit in Texas federal court over alleged anti-competitive behavior in the AI sector. The lawsuit claims that Apple and OpenAI have conspired to lock up markets, thus maintaining monopolistic control and stifling innovation from potential competitors like xAI.

xAI argues that Apple's exclusive partnership with OpenAI is the key reason behind Apple's reluctance to prominently feature the X app and the Grok app in its App Store. xAI is seeking billions in compensation, claiming substantial damage due to these alleged anti-competitive practices.

Industry legal experts have noted that Apple's significant hold on the smartphone market could lend credence to xAI's claims. However, Apple might counter by emphasizing its business strategy with OpenAI as a legitimate decision in a competitive landscape, citing potential security and operational benefits. Meanwhile, this case may set a legal precedent in defining the AI market in antitrust contexts.

(With inputs from agencies.)