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Angry Elon Musk sues Apple and OpenAI, says duo hurt AI competition; ChatGPT-maker calls it 'Mr Musk's ongoing pattern of harassment'

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Elon Musk is suing Apple and OpenAI, claiming that they have an anti-competitive arrangement that gives OpenAI's ChatGPT an unfair advantage on the iPhone. The lawsuit, filed in federal court in Fort Worth, Texas, on behalf of Musk's companies X and xAI, seeks billions of dollars in damages. The suit argues that Apple's integration of OpenAI into its iOS operating system hinders competition and innovation in the AI industry and limits consumer choice.

The lawsuit asserts that Apple's partnership with OpenAI makes it nearly impossible for other chatbot makers, including Musk's own Grok, to reach the top of the App Store charts. The legal action sets the stage for a major courtroom battle between Musk, one of the world's richest individuals, and Apple, one of the world's most valuable companies.

The lawsuit follows Musk's recent social media posts in which he questioned whether Apple was "playing politics" by not promoting his products. Apple responded that its App Store is "fair and free of bias," while OpenAI CEO Sam Altman suggested Musk's complaints were a result of his own management style at X.

Elon Musk angry over ChatGPT's integration in iPhones
Apple's collaboration with OpenAI involves integrating the most-downloaded free iPhone app in the U.S., ChatGPT, into its latest iPhones. The lawsuit claims this "exclusive arrangement" has made ChatGPT "the only generative AI chatbot integrated into the iPhone," and that the companies have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing."

An OpenAI spokesperson called the lawsuit "consistent with Mr. Musk’s ongoing pattern of harassment." Apple has not yet commented on the lawsuit.

This is not the first time Apple has faced legal challenges over its App Store. The company has a history of tangling with regulators and companies like Epic Games over claims its app store illegally squelches competition. The allegations in Elon Musk's lawsuit also mirror those brought by the U.S. Justice Department, which sued Apple in March 2023 for allegedly monopolizing the smartphone market. The government's suit claimed Apple used its power to block "super apps" that would make it easier for consumers to switch phones, an argument similar to Musk's claim that Apple's conduct inhibits the growth of "everything apps" like X.

In addition to monetary damages, Elon Musk's lawsuit seeks a court order to end the alleged "illegal arrangement."

However, the nature of Apple's deal with OpenAI is a point of contention. In court testimony from an unrelated case, Apple's senior vice president of services, Eddy Cue, said the partnership is non-exclusive and Apple is free to integrate other AI apps.

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