Elon Musk Drops Apple From Antitrust Lawsuit But Keeps Legal Battle Against OpenAI Alive

Reviewed byNidhi Govil

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Elon Musk's companies X Corp and SpaceXAI withdrew their antitrust lawsuit against Apple over ChatGPT integration into Siri, while maintaining claims against OpenAI. Judge Mark Pittman rejected OpenAI's request to review the confidential settlement, ruling it contains no information relevant to the ongoing case.

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Musk Abandons Apple Claims While Targeting OpenAI

Elon Musk's X Corp and SpaceXAI have dropped their antitrust lawsuit against Apple, ending a legal battle that began in 2025 over the iPhone maker's ChatGPT integration

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. The companies filed a motion requesting dismissal with prejudice, meaning the claims against Apple cannot be refiled in the future

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. Notably, the filing made no mention of a settlement or explanation for the sudden withdrawal, while explicitly maintaining all claims against OpenAI

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The Original Allegations Against Apple and OpenAI

The lawsuit against Apple accused the company of conspiring with OpenAI to dominate the AI market competition through monopolistic practices

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. Musk's companies alleged that Apple was deprioritizing competitors to ChatGPT in its App Store policies, particularly claiming that Grok chatbot was being illegally blocked from topping App Store rankings

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. The suit characterized the partnership as a "desperate bid to protect its smartphone monopoly," claiming Apple had been blindsided by major innovations in generative AI

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. Musk complained that Grok lacked the same iOS integration as ChatGPT enjoyed through Siri, seeking billions in damages for alleged stifling of AI industry innovation

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Judge Denies OpenAI Access to Confidential Settlement

Judge Mark Pittman rejected OpenAI's emergency motion to obtain the confidential settlement agreement between Musk's companies and Apple

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. After conducting an in-camera review of the requested materials, Pittman ruled they "do not present information relevant to the issues to be decided at summary judgment or trial in this case"

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. OpenAI had argued the settlement terms could contain information relevant to its defense as the legal battle continues solely against the AI company

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Strategic Implications and Ongoing Monopolization Claims

The dismissal suggests Musk may have obtained valuable intelligence through the litigation process. This summer, a court ordered Apple to hand over internal messages where employees discussed the OpenAI deal, evidence that may help Musk refine his calculations on how much of the chatbot market OpenAI supposedly sought to foreclose

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. Musk now plans to advance claims that OpenAI relied on the Apple deal—which Apple emphasized was never exclusive—to monopolize the chatbot market

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. OpenAI has consistently slammed the lawsuit as harassment as Musk's rival firm SpaceXAI races to catch up in the AI ecosystem

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Market Dynamics and Regulatory Context

The conduct alleged in the lawsuit—a phone maker favoring one chatbot inside its operating system—falls within categories covered by the Digital Markets Act, though no virtual assistant has ever been designated under the regulation

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. The European Commission's April review declined to add AI as a new category, instead stating it will further assess whether some AI services need designation as virtual assistants

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. Meanwhile, Apple has diversified its AI partnerships, reportedly paying Google around $1 billion annually for Gemini to run Siri

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. Ironically, OpenAI itself has expressed feeling "burned" by the Apple integration, with executives anonymously telling Bloomberg they expected the deal could generate billions of dollars per year in subscriptions, but Apple allegedly designed features that made ChatGPT functionality hard to discover

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. Adding complexity to the AI market landscape, Apple sued OpenAI in July for trade secret theft, accusing the company and its hardware chief of coordinated efforts to take information about unreleased products

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. As the narrowed litigation heads to trial this fall, the case highlights escalating tensions over market dominance and collusion concerns in the rapidly evolving generative AI sector.

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