Elon Musk Drops Apple from Antitrust Lawsuit but Continues Legal Battle Against OpenAI

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Elon Musk's X Corp and SpaceXAI have voluntarily dismissed their antitrust claims against Apple while maintaining their lawsuit against OpenAI. The original suit accused both companies of monopolistic practices through ChatGPT integration into iOS, but no settlement terms were disclosed for the Apple dismissal.

Elon Musk Drops Claims Against Apple in Antitrust Lawsuit

Elon Musk's companies X Corp and SpaceXAI filed a motion in Texas federal court on Monday to voluntarily dismiss with prejudice their claims against Apple in an antitrust lawsuit originally targeting both Apple and OpenAI

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. The filing states that "Plaintiffs have resolved their claims in this Action against Defendant Apple Inc.," though it provides no explanation about settlement terms or what prompted the sudden reversal

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. Apple did not oppose the motion, and the dismissal with prejudice means Musk's companies cannot bring the same claims against Apple again in the future

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Source: 9to5Mac

Source: 9to5Mac

Original Allegations of Monopolistic Practices Through ChatGPT Integration

The lawsuit against OpenAI, filed in August 2025, accused Apple and OpenAI of conspiring to suppress competing AI companies through their partnership integrating ChatGPT into iPhone features, including Siri and Apple Intelligence

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. Musk's companies claimed the partnership gave the firms a monopoly on Apple users' AI prompts, allegedly harming competition in both smartphone and chatbot markets

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. The lawsuit argued that ChatGPT became "the only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones," creating an unfair advantage over rivals like Musk's Grok chatbot

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Source: Ars Technica

Source: Ars Technica

Grok Chatbot and App Store Rankings Dispute

The fight with Apple seemingly escalated after Musk believed his Grok chatbot was being illegally blocked from topping the App Store rankings. Last August, he claimed that "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation"

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. The lawsuit complained that Grok did not have the same level of iOS integration as ChatGPT through Siri, and accused Apple of deprioritizing apps of competing generative AI chatbots in the App Store

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OpenAI Remains Target as Legal Proceedings Continue

Notably, Musk's companies did not move to dismiss claims against OpenAI and are continuing to pursue that portion of the lawsuit against OpenAI

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. Musk now plans to advance claims that OpenAI relied on the Apple deal to monopolize the chatbot market

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. OpenAI has slammed the lawsuit as another attempt to harass the AI company as Musk's rival firm, now called SpaceXAI, races to catch up. Last fall, OpenAI mocked Musk's claims as baseless, emphasizing that Musk won't even "hazard a guess" at what portion of the chatbot market is being foreclosed, instead claiming it could be anywhere from 0 to 55 percent based on "back-of-the-envelope math"

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Source: MacRumors

Source: MacRumors

Strategic Timing and Market Foreclosure Evidence

The timing of the Apple dismissal may be strategic. This summer, a court ordered Apple to hand over a range of internal messages where its employees discussed the OpenAI deal

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. That evidence may help Musk refine his calculations on market foreclosure as the narrowed litigation heads to trial this fall. Both Apple and OpenAI had previously argued that Musk does not compete in the smartphone industry and cannot pursue the claims, as none of his companies make smartphones

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. Apple had argued that a Musk win would devastate the tech industry by setting an alarming precedent that any deal with a supplier violates antitrust law if proposals from rival firms are rejected

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Musk's History with OpenAI and Sam Altman

Musk's ire for OpenAI is well-known. Earlier this year, Musk lost a lawsuit accusing OpenAI and Sam Altman of abandoning the company's nonprofit mission to create AI that benefits humanity. A jury unanimously ruled he waited too long to sue, not that his claims were invalid

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. The current case serves as something of a spiritual successor to that litigation

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Digital Markets Act and AI Market Competition

The conduct alleged in the lawsuit sits within a category the Digital Markets Act covers but has never used. The European regulation lists virtual assistants among ten services it can regulate, alongside operating systems, browsers, and the App Store

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. However, no virtual assistant like Siri has ever been designated under the act. The European Commission published its first review of the Digital Markets Act on April 28, finding the law "well-suited" to the rise of AI but seeing no need to amend it or add generative AI as a new category

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. The Commission said it will further assess whether some AI services need to be designated as virtual assistants

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OpenAI's Complications with Apple Partnership

Interestingly, OpenAI has its own grievances about the Apple partnership. In May, OpenAI started publicly saying it felt "burned" by the Apple integration, which OpenAI believed Apple didn't really promote. One executive anonymously told Bloomberg that OpenAI expected the deal "could generate billions of dollars per year in subscriptions," but instead Apple allegedly designed the features integrating ChatGPT in ways that made the chatbot functionality hard to discover

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. At that time, OpenAI was reportedly mulling legal action as efforts to renegotiate the deal stalled. Additionally, Apple sued OpenAI in July for trade secret theft, accusing the company and its hardware chief of a coordinated effort to take information about unreleased products

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. Apple has since moved to partner with Google, paying around $1 billion a year for Gemini to run Siri

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