Story
Musk’s xAI and X Corp. Settle Antitrust Lawsuit With Apple, Case Against OpenAI Continues
Elon Musk's companies, xAI and X Corp., have reached a settlement with Apple Inc. in a significant antitrust lawsuit and have moved to dismiss the case against the tech giant. The legal action against co-defendant OpenAI, however, will proceed.
Apple Case Dismissed
According to a Bloomberg report, the companies filed for a voluntary dismissal of the case against Apple with a federal judge in Texas on Monday. The settlement resolves claims that could have resulted in substantial financial penalties for the iPhone maker.
The lawsuit, originally filed in August, accused Apple of anticompetitive behavior by favoring OpenAI’s ChatGPT over rival chatbot developers. Musk’s firms alleged that Apple's integration of OpenAI technology into its operating systems stifled innovation and limited consumer choice in the artificial intelligence sector, and they sought billions of dollars in damages.
Claims Against OpenAI Remain Active
The court filing specified that the settlement and dismissal apply exclusively to Apple. The legal battle is not over, as the claims against OpenAI continue.
AdThe ongoing lawsuit alleges that OpenAI holds an unlawful monopoly over the chatbot market, maintained through anti-competitive practices. This continuation signals that Musk's primary challenge may be aimed at the AI model developer rather than its distribution partners.
Market Context
The terms of the settlement between Apple and Musk's companies were not publicly disclosed. For investors, the resolution removes a legal and financial uncertainty for Apple as it continues to expand its AI capabilities. The broader case highlights the intense competition and increasing legal scrutiny surrounding the dominant players in the rapidly growing AI industry.
Representatives from xAI, X Corp., Apple, and OpenAI did not respond to requests for comment on the matter, according to reports.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.