Apple, OpenAI Seek Dismissal of Musk's xAI Antitrust Lawsuit

Apple (AAPL, Financials) and OpenAI have asked a U.S. judge to dismiss a lawsuit filed by Elon Musk's artificial intelligence company, xAI, which accused them of illegally restricting competition in generative AI.

The suit, filed in August, alleged that Apple gave preferential treatment to OpenAI through an exclusive partnership, which led to Apple's App Store sidelining Musk's X and Grok apps. xAI claimed the arrangement justified billions of dollars in damages.

In a court filing Tuesday, Apple countered that its agreement with OpenAI is not exclusive and that it intends to partner with other chatbot developers. The company has integrated ChatGPT into its iOS and macOS systems for iPhones, iPads and Macs, but lawyers said this does not limit competition.

xAI and X do not plausibly allege that ChatGPT integration harms competition, Apple's attorneys wrote. OpenAI joined in seeking dismissal of the claims.

xAI did not immediately respond to requests for comment. The case remains pending in federal court.