Apple OpenAI Deal Sparks Lawsuit

Clash of the Titans: Musk Wages War on Apple and Altman in AI Supremacy Battle

A public and acrimonious conflict has erupted between two of Silicon Valley's most prominent figures, Elon Musk and Sam Altman. Musk began the newest phase of hostilities with a threat of litigation aimed at Apple, representing his AI company, xAI. He accuses the creator of the iPhone of fostering an anti-competitive atmosphere that exclusively helps OpenAI, the firm led by his former business associate, Altman. The accusations, aired on Musk's social media platform X, provoked cutting responses from Altman, launching a fresh spat that reveals deep-seated rivalries and competing visions for the future of technology. This feud unfolds against a backdrop of intensifying regulatory pressure on Apple from authorities in both the United States and Europe.

Musk Alleges Unfair Practices

The current dispute ignited when Elon Musk publicly declared his intention to sue Apple. Representing his firm, xAI, he asserted that Apple's behaviour creates a situation where no AI business other than OpenAI can achieve the premier spot on the App Store. Musk described this state of affairs as a clear-cut infringement of competition laws and announced that xAI would pursue immediate legal measures. His comments tap into a broader narrative of concern among some developers and competitors about the immense power Apple wields over its digital marketplace. The billionaire did not mince words, framing the issue as a deliberate and illegal suppression of competition that stifles innovation within the rapidly growing artificial intelligence sector.

Image Credit - by TechCrunch, CC BY 2.0, via Wikimedia Commons

The App Store Ranking Dispute

Central to Musk's complaint is the ranking and promotion of applications within Apple's App Store. He specifically questioned why Apple refuses to feature either his social media platform, X, or his AI chatbot, Grok, in its "Must Have" section. Musk asserted that X is the world's leading news application and that Grok holds the fifth-place ranking out of all applications, implying political reasons could be behind their omission. Currently, OpenAI's ChatGPT sits at the top of the "Top Free Apps" chart in the United States, while Grok is ranked fifth. This disparity, Musk argues, is evidence of a biased system designed to favour his rival.

Apple's Alliance with OpenAI

Underpinning this conflict is a significant partnership between Apple and OpenAI, announced in June 2024. This collaboration integrates ChatGPT's capabilities directly into Apple's core operating systems, including iOS, iPadOS, and macOS. For users, this means that features like the voice assistant Siri can tap into ChatGPT's extensive knowledge base to provide more comprehensive answers to queries. The integration also extends to system-wide writing tools, helping users generate content. Apple has stated that privacy protections are built-in, with user IP addresses obscured and OpenAI not storing requests from these integrations. This deep-level partnership, however, is what Musk points to as evidence of improper favouritism.

Image Credit - by Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0, via Wikimedia Commons

Altman's Sharp Rebuttal

OpenAI's chief executive, Sam Altman, offered a direct and forceful response to Musk's accusations. He described the claims as "remarkable" on the social media platform X. Altman immediately turned the tables, alluding to widespread allegations that Musk himself alters the algorithm on X to serve his corporate interests while penalizing his rivals. Multiple reports have previously suggested that Musk has directed engineers to alter the platform's code to amplify the reach of his personal posts. Altman's retort framed Musk's legal threats not as a principled stand against anticompetitive practices, but as a hypocritical move from a rival with a history of similar behaviour.

The Genesis of OpenAI

The current animosity between the two men is a stark contrast to their earlier collaboration. In 2015, they were among a group of technology luminaries who co-founded OpenAI. The organisation was established with a non-profit mission: to ensure that artificial general intelligence (AGI) benefits all of humanity. The founding promise was to create open-source AI, preventing its control by large corporations and prioritising safety and research over profit. This idealistic beginning brought together some of the brightest minds in the field, united by a shared goal of responsible AI development.

The Fracture of a Partnership

The unified front at OpenAI did not last. By early 2018, Musk had grown concerned that the organisation was falling behind competitors like Google. According to reports, he proposed a solution where he would assume personal control of OpenAI and lead it himself. The other founders, including Sam Altman, rejected this takeover bid. Following this rejection, Musk departed from the company's board, officially citing potential conflicts of interest with Tesla's own AI development for autonomous vehicles. His departure also meant he reneged on a significant planned financial contribution, creating a rift that would define their relationship for years to come.

The Legal Battleground

Musk's departure was not the end of his involvement with OpenAI. He has since initiated multiple lawsuits against the company he helped create. A central claim in these legal actions is that OpenAI betrayed its founding agreement by shifting toward a commercial entity, particularly through its lucrative partnership with Microsoft. Musk's lawyers have accused the organisation of a "deceit of Shakespearean proportions," alleging that Altman and others intentionally misled him about their commitment to a non-profit mission. A recent ruling allowed OpenAI's countersuit, which accuses Musk of a "years-long harassment campaign," to proceed, with a jury trial scheduled for spring 2026.

Competing Narratives

The ongoing feud is characterised by two starkly different narratives. From Musk's perspective, OpenAI has abandoned its noble, humanitarian mission in a greedy pursuit of profit and power. He portrays himself as a betrayed founder trying to hold the company to its original principles. Conversely, Sam Altman and OpenAI have depicted Musk as a resentful ex-partner who resented the firm's immense success after he was no longer involved. They allege that Musk's actions are not driven by altruism but by a desire to slow down a competitor after he failed to take control of it himself.

A Public Spectacle on X

The rivalry frequently spills over into public view on the social media platform X, in a way one commentator described as a "middle-school lunch fight." Following Altman's rebuttal, Musk complained about the number of views Altman's post received, noting it was far higher than numerous posts of his own despite having a fraction of the followers, and called the OpenAI CEO a "liar." Altman responded with a series of sharp jabs, first dismissing the complaint as a "skill issue" and then suggesting the involvement of "bots." This very public, real-time argument between two of the world's most powerful tech leaders has captivated and often bewildered online audiences.

The Affidavit Challenge

The online exchange culminated in a direct public challenge to Elon Musk from Sam Altman. In a move that escalated the war of words, Altman asked if Musk would be willing to sign a sworn affidavit. The proposed legal document would require Musk to declare that he has never ordered any alterations to the algorithm on X that were intended to undermine his rivals or preferentially assist his corporate ventures. Altman stated that if Musk were to sign such a document, he would issue an apology. This challenge put the onus on Musk to legally attest to his own platform's neutrality, a point he has often championed.

The Crowd-Sourced Fact-Check

Musk's core assertion that no AI company except OpenAI can achieve the premier rank on the App Store was swiftly disputed by people on his platform. Using the "Community Notes" function on X, which allows for collaborative context on posts, other users noted that a number of different AI applications have secured the number one ranking this year. For instance, an AI application from China called DeepSeek obtained the premier position in January. Furthermore, Perplexity's app claimed the top rank within India's App Store during July. These events happened after the collaboration between Apple and OpenAI was formed.

When AI Takes a Side

In a particularly ironic twist, Musk's own creation, the AI chatbot Grok, appeared to side against him. When a user on X questioned Grok about which individual was right during the argument, the AI sided with Sam Altman. The program's response indicated that after reviewing available evidence, Altman held the correct position, and it referenced reports about Musk directing algorithmic changes on X to advance his own interests. Grok even concluded its analysis with the phrase "Hypocrisy noted." Musk later responded by calling Grok's output "false defamatory statements" and promising that his engineers would work to "fix" the AI's reliance on legacy media sources.

A Global Pattern of Scrutiny

Elon Musk's legal threats against Apple do not exist in a vacuum. They land at a time when the tech giant is facing unprecedented antitrust scrutiny from regulators across the globe. Both in Europe and the United States, government bodies and competitors are intensifying their examination of Apple's command over its vast digital ecosystem, with a focus on its application marketplace. These broader regulatory battles provide a powerful context for Musk's specific complaints, adding another high-profile voice to the chorus of those arguing that Apple's market power has become anti-competitive and needs to be reined in by legal and regulatory action.

Europe's Digital Markets Act

In Europe, Apple is grappling with the implementation of the Digital Markets Act (DMA), a landmark piece of legislation designed to ensure fair and open digital markets. Early in the year, this legislation produced a major penalty against the company. The European Commission fined Apple over €1.8 billion for abusing its dominant position in the market for music streaming apps. The investigation, which began in 2020, found that Apple's rules illegally prevented developers like Spotify from informing users about cheaper subscription options available beyond the application marketplace. These "anti-steering" provisions were deemed illegal under EU antitrust rules.

Apple's Defiance in Europe

Apple has strongly contested the European Commission's ruling and has stated its intention to appeal the massive fine. In a public statement, the company argued that the decision was reached without any credible evidence of consumer harm. Apple further claimed that the ruling ignores the reality of a digital music market that is thriving, competitive, and growing rapidly. The company asserted that the primary beneficiary of the decision is Spotify, a company that it alleges met with the commission dozens of times during the investigation. Apple's defiant stance signals a prolonged legal battle over the principles of competition in Europe's digital single market.

The American Antitrust Assault

On the other side of the Atlantic, Apple is facing an even broader legal challenge. In March 2024, the United States Department of Justice (DOJ), with sixteen state attorneys general, initiated a wide-ranging civil competition lawsuit targeting the company. The lawsuit accuses Apple of unlawfully establishing and preserving a monopoly in the smartphone market, in violation of Section 2 of the Sherman Act. Attorney General Merrick Garland stated that consumers should not have to pay higher prices because companies violate antitrust laws and that, if left unchallenged, Apple would only strengthen its monopoly.

A Wider Scope of Allegations

The DOJ's legal action against Apple covers much more than just the digital marketplace. The official complaint alleges a "broad, sustained, and illegal course of conduct." Specific accusations include Apple's suppression of innovative "super apps" that could reduce consumer dependence on the iPhone by offering multiple services within a single interface. The lawsuit also points to the blocking of mobile cloud streaming services for gaming, the exclusion of cross-platform messaging apps, which results in the "green bubble" phenomenon, and diminishing the functionality of non-Apple smartwatches to lock users into its ecosystem.

Cupertino's Staunch Defence

Apple has responded to the Department of Justice's lawsuit with a vigorous defence, calling the action "wrong on the facts and the law." The company argues that the lawsuit threatens its core identity and the principles that set its products apart in a fiercely competitive market. An Apple spokesperson stated that a victory for the DOJ would hinder the company's ability to create the kind of integrated technology that consumers expect. Furthermore, it would set a dangerous precedent, empowering the government to take a heavy-handed approach in designing citizen's technology. The company has vowed to defend itself robustly against the allegations.

Image Credit - by Jernej Furman from Slovenia, CC BY 2.0, via Wikimedia Commons

A New Front in the AI Wars

The public feud between Musk and Altman, intertwined with the regulatory pressure on Apple, represents more than just a clash of personalities or a dispute concerning application rankings. It signals a new and critical front in the ongoing AI wars. The battle is no longer just about whose model is the most powerful, but about who controls the primary channels of distribution. As artificial intelligence becomes more deeply integrated into the operating systems of the devices we use daily, the power of platform gatekeepers like Apple to pick winners and losers grows exponentially, shaping the future of the entire industry.

The Power of the Gatekeepers

This episode highlights the immense strategic power held by companies that control major technology platforms. Apple's decisions about which apps to feature, which technologies to integrate, and which business models to allow have profound consequences for the entire digital economy. For emerging AI companies, securing a prominent position on the application marketplace or forming a collaboration with a hardware giant can be the difference between success and obscurity. Musk's legal threat, regardless of its ultimate outcome, forces a public conversation about whether these gatekeepers wield too much influence and whether their control stifles the very innovation they claim to foster.

An Unfolding Saga

The saga involving Elon Musk, Sam Altman, and Apple is a complex and multifaceted drama with no clear resolution in sight. It combines deep personal animosity rooted in a shared history, a high-stakes corporate rivalry in the transformative field of artificial intelligence, and a fundamental legal and regulatory challenge to the business model of one of the world's most powerful companies. The outcome of these interconnected conflicts—playing out in courtrooms, on social media, and within the closed-door meetings of regulatory bodies—will undoubtedly have a lasting impact on the landscape of technology for years to come.