Elon Musk's lawsuit against Apple and OpenAI: After a public outburst over Grok's App Store rankings, Musk followed through on his threat. His filing shows he's not just after more Grok downloads but is concerned about Apple and OpenAI teaming up to dash his "everything app" dreams. He alleges an agreement integrating ChatGPT into iOS violated antitrust and unfair competition laws, aiming to protect Apple's smartphone monopoly and block AI rivals.
- Apple's alleged actions: Apple is worried X will use Grok to create a "super app" that could replace the need for a sophisticated smartphone, so it partnered with OpenAI. Apple executive Eddy Cue expressed concerns about AI destroying the smartphone business. The lawsuit claims Apple gave ChatGPT exclusive access to Siri and other iPhone features, using billions of prompts as training data to cement its lead and limit X and xAI innovation.
- Impact on competition and market: Without similar access, rivals like xAI can't scale, limiting their innovation and ability to compete. Customers will have less choice and receive fewer features. Apple will continue to sell iPhones at monopoly prices, and OpenAI plans to double its subscription price. The exclusive deal prevents fair competition and poses risks to X's business and potential investment.
- Apple allegedly fears iPhones will become obsolete: Musk's companies are struggling to compete with ChatGPT. With the iOS integration, only OpenAI gets information when users prompt Siri. Apple has rejected xAI's requests to integrate Grok and is accused of delaying app updates to reduce competition. If Grok were more widely used, it could accelerate chatbot innovation and potentially make iPhones obsolete.
- Musk fears deal could doom X "everything app": The OpenAI/Apple deal's shady finances suggest it was designed to block AI innovation. OpenAI provided ChatGPT for free and is sacrificing short-term profits for access. Apple has no immediate profits and no technical reason to be exclusive. X claims the deal gives OpenAI exclusive access to a large portion of potential generative AI chatbot prompts, and no competitor has been able to challenge ChatGPT's stranglehold. Losing the lawsuit could doom X as Grok's performance affects the X app's attractiveness and revenue.
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