Musk’s X Corp and SpaceXAI resolve antitrust lawsuit against Apple

ELON Musk’s X Corp and SpaceXAI said on Monday (Sep 14) they have resolved their claims against Apple in a lawsuit that alleged the iPhone maker conspired with OpenAI to unlawfully monopolise markets for smartphones and generative AI chatbots.

In a court filing, X and SpaceXAI, a division of SpaceX, moved to dismiss the claims in a lawsuit they brought against Apple and OpenAI last year. The filing did not explain the reasons for dismissal or say whether a settlement had been reached.

The resolution ends a high-profile legal battle between Musk and one of the world’s most valuable companies over control of the fast-growing AI chatbot market, though the claims against OpenAI will continue.

The lawsuit claimed Apple violated antitrust law by exclusively integrating OpenAI’s ChatGPT into Apple Intelligence features on iPhones and other Apple devices. It alleged Apple had illegally shut out rivals in its partnership with OpenAI.

X and SpaceXAI said they will continue to pursue claims against OpenAI, which is also a defendant in the lawsuit.

Musk’s companies did not immediately respond to requests for comment, and neither did Apple and OpenAI.

OpenAI in a court filing on Monday said it was not involved in the agreement and did not know the terms. It said it has asked X to make the agreement available, saying it would likely affect the claims in the lawsuit and OpenAI’s defense.

The lawsuit alleged that Apple and OpenAI “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” A judge ruled in November that the case could move forward, in a preliminary victory for Musk.

OpenAI and Apple have both denied any wrongdoing. OpenAI in a court filing accused Musk of waging “a campaign of lawfare” against it. Apple, in seeking dismissal of the lawsuit, said its OpenAI integration on iPhones is not exclusive.

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In May, OpenAI defeated a separate lawsuit by Musk that accused the company of straying from its original mission to develop artificial intelligence for the benefit of humanity and not for profit.

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 last year for US$33 billion to enhance its chatbot training capabilities. REUTERS