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The San Francisco Frontier | Est. 2025
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Silicon Valley Drama: Elon Musk's Legal Battle Against Tech Giants Heats Up

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The tech world is buzzing with another dramatic legal confrontation as Elon Musk’s artificial intelligence company, xAI, has filed an antitrust lawsuit against Apple and OpenAI.

In a federal court in Texas, Musk’s legal team alleges that Apple and OpenAI have conspired to maintain market monopolies and prevent innovative competitors like xAI from gaining traction. The lawsuit stems from Musk’s frustration over the ranking of his Grok AI app in the Apple App Store, which he claims is unfairly positioned below ChatGPT.

The core of the lawsuit argues that Apple’s exclusive deal with OpenAI has artificially limited competition in the AI marketplace. Musk’s attorneys claim that without this partnership, Apple would be more likely to prominently feature alternative AI applications like Grok.

This legal action is just the latest chapter in Musk’s ongoing feud with OpenAI and its CEO Sam Altman. Previously, Musk has sued OpenAI over what he claims was an illegal departure from its original nonprofit mission. He even made a headline-grabbing $97.4 billion offer to purchase the company, which was swiftly dismissed.

OpenAI has not remained passive, firing back with claims of harassment. In April, they initiated a potential defamation suit, suggesting Musk has been engaging in a “years-long harassment campaign” designed to impede their progress.

The user numbers tell an interesting story: while Grok currently has 18.8 million monthly active users, ChatGPT boasts around 800 million weekly active users and processes an staggering 2.5 billion user prompts daily. OpenAI expects to reach 1 billion weekly active users by year’s end.

Both Apple and OpenAI have dismissed the lawsuit. Apple maintains that its App Store remains “fair and free of bias,” while an OpenAI spokesperson characterized the filing as “consistent with Mr. Musk’s ongoing pattern of harassment”.

As the tech world watches, this legal battle represents another intense moment in the rapidly evolving landscape of artificial intelligence and corporate competition.

AUTHOR: mb

SOURCE: SFist