Musk Sues OpenAI and Apple Over AI Access in App Store

Sam Altman, CEO of OpenAI, left, and Tesla CEO Elon Musk. (Getty Images)

Two of Tesla CEO Elon Musk’s companies have followed through on his recent threat to sue over how potential users can access artificial-intelligence technology, highlighting how the stakes are rising within the industry as AI and its potential grow.

Monday, xAI, the entrepreneur’s AI company, and X, his social-media business, filed suit against Apple and OpenAI, alleging the pair were stifling AI competition. Apple and xAI didn’t immediately respond to requests for comment.

“This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence,” reads part of the complaint, which adds that xAI and X believe Apple and OpenAI are working in tandem to prevent innovators from competing. “Unless the court enjoins Apple and OpenAI’s unlawful conduct, defendants will continue to thwart competition.”

The suit was filed in the U.S. District Court for the Northern District of Texas.

“This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” said OpenAI in an emailed statement.

Investors shouldn’t be all that surprised by Monday’s development. On Aug. 11, Musk threatened legal action, saying he believes that Apple is favoring OpenAI’s ChatGPT over rival systems. “Apple didn’t just put their thumb on the scale, they put their whole body!” Musk said on X, which is now part of xAI.

“The App Store is designed to be fair and free of bias,” said Apple in an emailed statement on Aug. 12.

Apple stock was seemingly unaffected by the suit. Shares were up most of the day, but ended down 0.2%, at $227.16, as the market weakened into the close. The S&P 500 and Dow Jones Industrial Average fell 0.4% and 0.8%, respectively.

xAI is privately held. Tesla stock added 1.9%, closing at $346.60, though there wasn’t much reason for investors to expect Tesla stock to react to the suit.

Investors, however, are paying close attention to xAI. For starters, xAI’s chatbot Grok is now available on Tesla vehicles. What is more, Musk has floated the idea that Tesla should take a stake in xAI, a possibility that investors would eagerly accept, according to Wedbush analyst Dan Ives.

xAI is working on AI agents that generate images, answer questions, and could make employees more efficient. Tesla is working on embodied AI, seeking to develop cars that drive themselves and humanoid robots that can perform useful tasks.

Write to Al Root at allen.root@dowjones.com