OpenAI, Apple lose bid to toss Elon Musk xAI suit over competition

By Madlin Mekelburg

 

Apple Inc. and OpenAI must answer to a lawsuit filed by Elon Musk’s X Corp. and xAI accusing the companies of conspiring to thwart competition in emerging markets in artificial intelligence, a federal judge in Texas ruled.

 

US District Judge Mark Pittman on Thursday rejected a bid by Apple and OpenAI to dismiss the lawsuit, which was originally filed in August. Pittman didn’t explain his decision in his written order, but he directed both parties to submit further filings arguing their positions on the case.

 

The lawsuit seeks billions of dollars in damages from Apple and OpenAI, based on claims that Apple’s decision to integrate OpenAI into the iPhone’s operating system inhibits competition and innovation within the AI industry and harms consumers by depriving them of choice.

 

 

Lawyers for both companies rejected those arguments in separate court filings. OpenAI accused Musk of “waging a campaign of lawfare” against the company, due in part to his longstanding feud with Chief Executive Officer Sam Altman. Musk and Altman founded OpenAI together a decade ago.

 

Apple’s attorneys argued that the underlying allegations in the lawsuit are inaccurate, given that the company does not have an exclusive agreement in place with OpenAI and intends to work with other AI companies in the future.

 

The case is X Corp. v. Apple, 25-cv-00914, US District Court, Northern District of Texas (Fort Worth).