In a preliminary legal victory for Elon Musk, a U.S. federal judge has allowed X Corp’s lawsuit against Apple and OpenAI to proceed, rejecting attempts by the tech giants to dismiss the case. The lawsuit, filed in August, alleges anticompetitive behavior and monopolistic practices related to smartphone and generative AI chatbot markets.

US Judge Allows Lawsuit to Proceed

U.S. District Judge Mark Pittman, presiding in Fort Worth, Texas, ruled that Musk’s social media platform, X, and its AI-focused startup, xAI, may continue pursuing the allegations for now. Judge Pittman emphasized that this ruling does not reflect a judgment on the merits of the case, noting that factual disputes will be examined at later stages.

The lawsuit claims that Apple violated antitrust laws by exclusively integrating ChatGPT into Apple Intelligence features on iPhones and other devices, allegedly sidelining competing AI chatbots. X Corp. also argued that Apple further reinforced exclusivity by prominently featuring ChatGPT on its “Must-Have Apps” list while giving rivals minimal visibility in the App Store.

Responses from Apple and OpenAI

Apple sought dismissal of the lawsuit, asserting that its partnership with OpenAI is not exclusive and that the complaint fails to demonstrate any unlawful agreement barring Apple from working with other chatbots. A spokesperson for Apple argued:
“Choosing one partner first is not unlawful,” and highlighted that other chatbots remain accessible through browsers and apps, with X and Grok ranking highly in the App Store.

OpenAI described the lawsuit as part of what it called Musk’s ongoing pattern of harassment, stating they look forward to addressing the claims in court. OpenAI also accused Musk of waging a “campaign of lawfare” against ChatGPT and its leadership.

Background: Musk, X, and xAI

Elon Musk’s xAI acquired X Corp in March for $33 billion, aiming to enhance AI chatbot capabilities. Musk has also integrated his Grok chatbot into Tesla vehicles. The dispute highlights the growing tension in the AI and generative chatbot markets, particularly between Musk’s ventures and ChatGPT, which became the fastest-growing consumer application in history shortly after its launch in late 2022.

This case is one of several ongoing legal battles involving Musk and OpenAI, underscoring the high stakes as major tech companies compete for dominance in artificial intelligence and mobile platforms.

Next Steps in the Lawsuit

While the lawsuit will now move forward, Judge Pittman clarified that future proceedings will address factual disputes and the substantive claims of antitrust violations. Both Apple and OpenAI will have the opportunity to defend their partnerships and business practices, while X Corp and xAI aim to prove that Apple’s exclusive integration of ChatGPT unfairly limited competition.