Federal Judge Allows Elon Musk's Antitrust Lawsuit Against Apple and OpenAI to Proceed

Apple and OpenAI fail to dismiss Elon Musk's antitrust lawsuit - 9to5Mac

A US District Judge rejected Apple's request to toss the lawsuit that accuses it and OpenAI of thwarting competition in the AI sector. Here are the details. Earlier this year, Elon Musk accused Apple and OpenAI of colluding to prevent other AI companies from reaching the top spot on the App Store. At the time, xAI had just released a few new features to the Grok app, and Musk was frustrated that the app hadn't climbed further up the App Store rankings. When Musk followed through with his promise to sue, Apple countered with the following statement: "The App Store is designed to be fair and free of bias. We feature thousands of apps through charts, algorithmic recommendations, and curated lists selected by experts using objective criteria. (...) Our goal is to offer safe discovery for users and valuable opportunities for developers, collaborating with many to increase app visibility in rapidly evolving categories." OpenAI CEO Sam Altman also responded through a series of posts on X, in which he accused Musk of having manipulated the X algorithm in the past to "hurt competitors". A few days later, Apple filed a request to dismiss the lawsuit, which brings us to today. Earlier today, US Judge Mark Pittmann issued the following order: Before the Court are Defendant Apple Inc.'s Motion to Dismiss, ECF No. 36, and the Motion of Defendants OpenAI, Inc., OpenAI, LLC, and OpenAI OPCO, LLC to Dismiss the Complaint Pursuant to Rule 12(B)(6), ECF No. 40. After a thorough review of the relevant docket entries and applicable law, the Motions are hereby DENIED. The Court additionally finds that the issues are more well-suited for adjudication through a motion(s) for summary judgment pursuant to FED. R. CIV. P. 56. This Order should not be construed as a judgment (or pre-judgment) on the merits of this litigation. This means that Apple and OpenAI have failed in their initial attempt to dismiss the lawsuit outright, and that the judge wants a fuller record before deciding anything substantial in the case.. The judge made a point to say that the denial of the motion to dismiss the case doesn't necessarily imply that Apple and OpenAI are in the wrong, but rather that the case requires a closer review after more evidence and arguments are submitted. What's your take on Musk's accusations? Let us know in the comments.

Apple and OpenAI Must Face xAI Lawsuit Over Siri Integration

Apple and OpenAI were not able to get a lawsuit filed by Elon Musk's xAI startup dismissed, reports Bloomberg. Texas District Judge Mark Pittman said today that Apple and OpenAI will need to continue on with the lawsuit and submit filings arguing their case. The lawsuit claimed that Apple was "blindsided by major innovations in AI," leading it to team up with OpenAI in a "desperate bid to protect its smartphone monopoly." It referenced Siri's ChatGPT integration, because Apple has not established deals with other companies for Siri integration. xAI said that if iPhone users want to access a generative AI chatbot, "they have no choice but to use ChatGPT, even if they would prefer to use more innovative and imaginative products like xAI's Grok." iPhone users can, of course, download any chatbot app from the App Store, but xAI said that apps do not have the same "functionality, usability, and integration" as ChatGPT does with Siri. The lawsuit also accused Apple of "deprioritizing" the apps of competing generative AI chatbots, and depriving Grok of data from billions of iPhone users because Grok isn't integrated with Siri like ChatGPT. The lawsuit claims that xAI "sought an integration" with Apple Intelligence, and was denied. In a filing earlier this month, Apple and OpenAI both argued that the lawsuit is flawed because there is no exclusivity deal that prevents Apple from integrating other chatbots into Siri. xAI has asked the court to put a stop to Apple and OpenAI's "anticompetitive scheme," and help it "recover billions in damages."

AppleInsider.com

Elon Musk wasn't happy with how xAI was performing in Apple's App Store compared to ChatGPT, so he filed a lawsuit, which Apple and OpenAI must now face after failing to get it dismissed. There are a lot of odd details surrounding a case that pits Elon Musk and former business partner Sam Altman against each other -- with Apple trapped in the middle. Musk's xAI developed Grok to compete with ChatGPT, but it has fallen short with a highly biased bot programmed to promote right-wing extremism in place of facts. While Grok is technically impressive on its own, its bias has made it a limited competitor to those seeking out that kind of biased information. According to a report from Bloomberg, Apple and OpenAI must face a lawsuit claiming that the failure of Grok's popularity is due to anticompetitive behavior. Apple and OpenAI have already denied the allegations. OpenAI accused Musk of waging "lawfare" against Altman, while Apple says it doesn't have exclusivity agreements preventing other companies from running in a similar manner to ChatGPT on iOS. While OpenAI is the only current partnership, Apple has made it clear on several occasions that it intends to bring in other third-party AI models. Ironically, the lawsuit will likely prevent Grok from ever being offered in such a manner, though it likely never would have been given its controversial nature. The lawsuit alleges that Apple and OpenAI are deliberately depriving consumers of choice through their partnership. However, the origins of the lawsuit aren't quite so cut and dry. How we got here Before the lawsuit was filed, the disagreement Musk had with Apple and OpenAI was far more conspiratorial. He believed that Apple was deliberately keeping Grok from reaching number one on the App Store, and in a separate post, X. At the time, Grok was number 6 while X was 38 in the top free charts. Today, Grok is 12 and X is 29. These apps stay within that general vicinity due to the size of X as a platform (in spite of it shrinking significantly since the Musk acquisition). The tone of Musk's accusations shifted quickly to focus on xAI and Grok, likely due to lawyers suggesting a reasonable path for a lawsuit. While he'd never be able to prove Apple was changing the App Store algorithm, he can make the claim that Apple and OpenAI's partnership may be limiting competition. However, even that lawsuit is frivolous at best given that other AI companies have shot to the top of Apple's free charts multiple times. ChatGPT doesn't stay in number one permanently either, but its overwhelming popularity does keep it there. Grok and, by extension, X have struggled with popularity in recent months. Repeated scandals rock Musk's user base on a regular basis, whether it's Grok declaring itself "Mecha Hitler" or X restoring a controversial account, the lack of wider interest is owed to their target niche. Grok's struggle for relevance has also been punctuated by a pivot to adult content, a move echoed recently by ChatGPT. If Grok is the leader of anything in AI, it is as an indicator of how close the industry is to implosion. Apple's lawyers were likely hoping to avoid a full-scale lawsuit, but Musk chose Texas for his business operations for a reason. The judge didn't share why he made his decision, but all companies involved must now submit filings to argue their individual cases.

Elon Musk's X Clears First Hurdle In Lawsuit Accusing OpenAI And Apple Of AI Monopoly - Apple (NASDAQ:AAPL)

A federal judge has ruled against Apple Inc. (NASDAQ:AAPL) and OpenAI, refusing to dismiss a lawsuit filed by Elon Musk's X Corp. The lawsuit accuses the companies of conspiring to monopolize the smartphone and generative AI chatbot markets. Court To Resolve Factual Disagreements Later On Thursday, U.S. District Judge Mark Pittman in Fort Worth, Texas, denied the motion to dismiss the lawsuit, allowing Musk's X and xAI to proceed with their case. Pittman emphasized that his decision doesn't reflect any view on the strength of X's claims, noting that factual disagreements will be resolved later in the case. Apple told the court that choosing "one partner first is not unlawful," according to Reuters. OpenAI, for its part, described the suit as part of Musk's "ongoing pattern of harassment," and accused the xAI founder of waging "a campaign of lawfare" against OpenAI and ChatGPT, according to Reuters. X, Apple, and OpenAI did not immediately respond to Benzinga's requests for comment. See Also: Vivek Ramaswamy-Founded Strive Drew $37 Million Investment From This Pension Fund: What You Should Know Lawsuit Challenges Apple's AI Choices The suit, filed in August, alleges that Apple violated antitrust laws by making ChatGPT the sole AI integrated into its Apple Intelligence features. X and xAI also allege that Apple reinforced this exclusivity by spotlighting ChatGPT in its "Must-Have Apps" list while pushing rival apps to the sidelines in the App Store. Apple pushed back on the allegations, saying its OpenAI deal is not exclusive and that users can still access other chatbots through browsers and apps. Post the iPhone maker's Q4 earnings conference call, CEO Tim Cook did not offer specifics about the company's AI partnerships other than the ChatGPT maker but told CNBC of its "intention" to associate with more people "over time." Earlier in November, the public dispute between Musk and OpenAI CEO Sam Altman reached a new level when Musk accused OpenAI of theft. Altman, in turn, defended OpenAI, stating that the structure it has now is necessary for its success. READ NEXT: Apple's Latest Software Update Now Lets You Carry Your Passport Right On Your iPhone Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AAPLApple Inc$273.450.18%OverviewMarket News and Data brought to you by Benzinga APIs

Apple and OpenAI must face X Corp's lawsuit for now, U.S. judge rules

Apple (AAPL.O) and ChatGPT maker OpenAI on Thursday failed to convince a federal judge to dismiss a lawsuit by Elon Musk's X Corp accusing them of conspiring to monopolize markets for smartphones and generative AI chatbots. In his ruling, U.S. District Judge Mark Pittman in Fort Worth, Texas, said Musk's social media platform X and startup xAI can move forward for now with their lawsuit, in a preliminary victory for the billionaire entrepreneur in a battle over artificial intelligence dominance. Pittman said in his brief order that his ruling should not be seen as a judgment on the merits of X's allegations, and that he will look at disputes over fact at a later stage in the case. Apple, OpenAI and X did not immediately respond to requests for comment. Musk's companies claimed in the lawsuit filed in August that Apple has violated antitrust law by exclusively integrating ChatGPT into Apple Intelligence features on iPhones and other Apple devices. The lawsuit alleged Apple had illegally shut out rivals in its partnership with OpenAI. X and xAI also alleged Apple reinforced the exclusivity by featuring ChatGPT on its "Must-Have Apps" list while sidelining rivals in the App Store. Apple, in seeking dismissal of the lawsuit, said its OpenAI deal is not exclusive and that the complaint fails to allege any agreement barring Apple from working with other chatbots. "Choosing one partner first is not unlawful," Apple told the court. Apple denied any anticompetitive conduct, telling the court that other chatbots remain available through browsers and apps, and X and Grok rank high in App Store charts. OpenAI, in responding to the lawsuit, accused Musk of waging "a campaign of lawfare" against OpenAI and ChatGPT. Musk is separately suing OpenAI and its leaders in a federal court in California. OpenAI's ChatGPT became the fastest-growing consumer application in history in the months following its launch in late 2022. Musk's xAI acquired X in March for US$33 billion to enhance its chatbot training capabilities. Musk has also integrated the Grok chatbot into vehicles made by his electric vehicle company, Tesla TSLA.O.

Big Tech's AI dominance challenged as court backs Musk's case against Apple, OpenAI By Invezz

Invezz.com - A Texas federal court has allowed a major antitrust lawsuit to proceed, targeting Apple Inc. and OpenAI over claims that their partnership may suppress competition in artificial intelligence. The legal challenge, brought by Elon Musk's X Corp. and xAI, argues that Apple's decision to embed OpenAI into the iPhone's operating system gives the chatbot maker a major advantage, raising concerns about market dominance and reduced innovation. The case moves forward as global regulators intensify scrutiny over how Big Tech firms expand into the generative AI space through partnerships and operating system-level integrations. Legal scrutiny widens in AI competition battleThe lawsuit, filed in August in the Northern District of Texas, alleges that Apple's decision to integrate OpenAI's technology into its iOS ecosystem effectively undermines fair competition. According to X Corp. and xAI, this move blocks rival AI companies from reaching iPhone users at a system level, limiting consumer choice and suppressing innovation across the sector. US District Judge Mark Pittman on Thursday denied a motion by Apple and OpenAI to dismiss the case. Though Pittman gave no detailed reasoning in the written ruling, he requested further submissions from both sides. The litigation, filed under case number 25-cv-00914, now moves into its next phase, setting the stage for a legal clash that could influence how operating systems interact with third-party AI tools. Billions at stake in battle over AI accessThe complaint seeks billions of dollars in damages, claiming that Apple's arrangement with OpenAI is harming the AI ecosystem by making it harder for emerging companies to compete. The plaintiffs argue that consumers lose out because fewer choices are available when one AI provider is favoured by default within an operating system. Apple's legal response claims the allegations are misleading. The company states that it does not hold an exclusive contract with OpenAI and is planning to include support for other AI tools. However, no additional details have been provided about which companies Apple might collaborate with or on what timeline. OpenAI also rejected the claims, saying that the lawsuit is not about protecting competition but is instead "a campaign of lawfare", referring to Musk's long-standing disputes with OpenAI CEO Sam Altman. Musk co-founded OpenAI in 2015 before later distancing himself from the company. Operating system integration under the microscopeThis case brings into focus the broader issue of how AI tools are being integrated into consumer technologies. Embedding AI models directly into an operating system gives those providers a significant advantage over competitors who must rely on third-party apps or web interfaces to reach users. With Apple's devices serving over a billion users worldwide, the operating system's influence is enormous. X Corp. and xAI argue that OpenAI's position within iOS could give it near-unreachable distribution advantages, solidifying its place in the AI market before alternatives can gain traction. The lawsuit also comes at a time when global regulators are looking closely at similar Big Tech moves. In the UK and the EU, competition authorities are already probing Microsoft's deals with OpenAI and Amazon's investment in Anthropic. The legal pressure in the US now mirrors growing regulatory interest in how tech giants are leveraging platform power in AI.

Apple and OpenAI must face X Corp's lawsuit for now, US judge rules

(Reuters) -Apple and ChatGPT maker OpenAI on Thursday failed to convince a federal judge to dismiss a lawsuit by Elon Musk's X Corp accusing them of conspiring to monopolize markets for smartphones and generative AI chatbots. In his ruling, U.S. District Judge Mark Pittman in Fort Worth, Texas, said Musk's social media platform X and startup xAI can move forward for now with their lawsuit, in a preliminary victory for the billionaire entrepreneur in a battle over artificial intelligence dominance. Pittman said in his brief order that his ruling should not be seen as a judgment on the merits of X's allegations, and that he will look at disputes over fact at a later stage in the case. MUSK COMPANIES SAY APPLE BREACHED ANTITRUST LAW Apple, OpenAI and X did not immediately respond to requests for comment. Musk's companies claimed in the lawsuit filed in August that Apple has violated antitrust law by exclusively integrating ChatGPT into Apple Intelligence features on iPhones and other Apple devices. The lawsuit alleged Apple had illegally shut out rivals in its partnership with OpenAI. X and xAI also alleged Apple reinforced the exclusivity by featuring ChatGPT on its "Must-Have Apps" list while sidelining rivals in the App Store. Apple, in seeking dismissal of the lawsuit, said its OpenAI deal is not exclusive and that the complaint fails to allege any agreement barring Apple from working with other chatbots. "Choosing one partner first is not unlawful," Apple told the court. Apple denied any anticompetitive conduct, telling the court that other chatbots remain available through browsers and apps, and X and Grok rank high in App Store charts. OpenAI, in responding to the lawsuit, accused Musk of waging "a campaign of lawfare" against OpenAI and ChatGPT. Musk is separately suing OpenAI and its leaders in a federal court in California. OpenAI's ChatGPT became the fastest-growing consumer application in history in the months following its launch in late 2022. Musk's xAI acquired X in March for $33 billion to enhance its chatbot training capabilities. Musk has also integrated the Grok chatbot into vehicles made by his electric vehicle company, Tesla. (Reporting by Mike Scarcella; Editing by David Bario, Leslie Adler, Rod Nickel)

Elon Musk wins first round as US court lets xAI sue Apple and OpenAI over Siri integration

Apple and OpenAI insist there is no exclusive deal and say the lawsuit is baseless. A US federal judge has allowed Elon Musk's xAI lawsuit to proceed, rejecting Apple and OpenAI's request to dismiss the case, according to Bloomberg. Texas District Judge Mark Pittman ruled that both companies must proceed with the legal process and present detailed arguments to defend their positions. Elon Musk's xAI filed the lawsuit in August 2025, accusing Apple and OpenAI of collaborating to strengthen their control over the rapidly expanding AI market. The complaint followed Musk's criticism that his platforms, X and the Grok chatbot, were left off the App Store's "Must Have" list. In the court filing, xAI claimed that Apple fell behind in the AI race and turned to OpenAI to maintain its dominance in the smartphone ecosystem. The case focuses on Apple's deep integration of ChatGPT into Siri, which xAI claims gives OpenAI an unfair advantage because Apple has not provided comparable system-level access to other chatbot developers. Also read: Xiaomi 14 Civi price drops by over Rs 18,000 on Amazon: How to grab this deal While iPhone users can freely download AI apps such as Grok, xAI claims that standalone apps cannot compete with Siri's ChatGPT integration for convenience and system access. The company also accuses Apple of minimising rival AI products' App Store visibility and preventing Grok from accessing valuable iPhone user data by denying it the same integration. Also read: Google Pixel 9 Pro price drops by over Rs 25,000 on Amazon: How this deal works Apple and OpenAI responded in a joint filing earlier this month, claiming that the lawsuit is without merit and that Apple has no exclusive agreement preventing it from adding other chatbots to Siri in the future. However, we may have to wait to see how where this lawsuit goes and if the decision comes in the favour of Elon Musk and xAI.