Texas ,August 26(HS):

Elon Musk’s companies X and xAI have filed a lawsuit against Apple and OpenAI, accusing the tech giants of striking an illegal exclusive deal that stifles competition in the fast-growing AI market.

Filed in a federal court in Texas, the suit challenges Apple’s move to integrate OpenAI’s ChatGPT directly into iPhone operating systems, arguing the arrangement gave OpenAI privileged access to millions of Apple users’ data and unfair visibility in the App Store.

The companies allege the deal has “foreclosed competition, deprived rival chatbots of scale, and reduced innovation,” entrenching Apple and OpenAI’s dominance. OpenAI currently controls roughly 80% of the US chatbot market, while Apple commands about 65% of the smartphone market, according to the filing.

The action formalises threats Musk made earlier this month after accusing Apple of favouring OpenAI in its app rankings. OpenAI dismissed the lawsuit as “consistent with Mr Musk’s ongoing pattern of harassment,” while Apple has not responded.

Musk, once a co-founder of OpenAI alongside Sam Altman, has turned into one of its fiercest critics and launched his own AI rivals, including xAI and the chatbot Grok.

The case adds to the mounting antitrust scrutiny of Apple’s app store practices and AI tie-ups, which have already drawn global regulatory attention.

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Hindusthan Samachar / Jun Sarkar