Elon Musk's App Store policies criticism met with counterattack from Apple
In a dramatic turn of events, Elon Musk's companies xAI and X Corp. have filed an antitrust lawsuit against Apple and OpenAI in Texas federal court. The suit, which spans 61 pages, alleges that Apple and OpenAI have formed an anticompetitive scheme by favouring OpenAI’s ChatGPT in the iPhone App Store rankings and integrating ChatGPT into Apple products, thereby disadvantaging competitors like Musk's own Grok chatbot [1][2].
The lawsuit seeks monetary damages and a court order to stop these alleged illegal practices, framing the partnership between Apple and OpenAI as a coordinated effort to stifle AI competition and protect Apple's smartphone monopoly.
Apple's response to these accusations has been firm. The tech giant insists that its App Store is designed to be free and fair of bias, and that rankings are engagement-based, with multiple AI apps continuing to rank highly [2].
Meanwhile, OpenAI has dismissed Musk's allegations as baseless and a distraction from real AI progress. The company, co-founded by Sam Altman, has been at the centre of an ongoing conflict with Musk, with public disputes and legal actions between the parties [2].
Musk's move to establish xAI was a direct response to the rise of OpenAI's ChatGPT. In June 2024, Apple launched Apple Intelligence, integrating OpenAI's ChatGPT (powered by GPT 40) into iPhones, iPads, and Macs [3]. Most AI processing in Apple Intelligence runs locally on devices, while complex queries are sent through Apple's Private Cloud Compute.
The major overhaul of Siri, designed to be more conversational, context-aware, and deeply integrated, has been postponed and is unlikely to arrive before 2026. This delay has raised concerns among investors and analysts [3].
In a bid to address privacy concerns, Apple's AI strategy centres around users needing to opt in before any ChatGPT queries reach the cloud [4]. Privacy is also a key focus for Apple, with the tech giant pledging another $100 billion investment in US manufacturing on August 7, 2025 [5]. Independent experts can audit Apple's privacy infrastructure to verify compliance.
The feud between Musk and Altman exemplifies the high stakes and fierce competition driving the rapid evolution of AI. The rivalry between the two reflects broader clashes over the future of AI development, ethics, and control in Silicon Valley [6].
Musk has not shied away from legal action, threatening Apple with legal action due to alleged restrictions on apps competing with ChatGPT-maker OpenAI in the App Store [7].
As the case progresses, it will be interesting to see how this high-profile legal battle unfolds and its potential impact on the AI landscape.
References: [1] The Verge [2] TechCrunch [3] Bloomberg [4] Recode [5] Apple Insider [6] WSJ [7] CNET
Finance experts have begun analyzing the potential consequences of the ongoing antitrust lawsuit between Elon Musk's companies xAI and X Corp, and Apple and OpenAI, particularly on the tech sector's business ventures involving technology and AI. Meanwhile, investors are closely monitoring the feud, as it could potentially reshape the market dynamics of the AI industry.
