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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.
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.
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.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Posted In: AAPL
