Elon Musk’s X and Xai have taken over Apple and Openai, competing to compete with the AI-exclusive tech giants.
The corporation’s lawsuit filed in federal court in Texas claims that posting the exclusive partnership between Apple and Openai on the iPhone is a calculated move by two monopolies working together to ensure continued control.
With the agreement to deeply integrate ChatGpt into Apple’s operating system, the world’s most famous AI assistant is now one of the world’s most famous AI assistants, allowing you to control the core iPhone features. It effectively locks rivals like Xai’s own chatbot, Grok.
The lawsuit alleges that this cites the Openai Strategic Document, which denies a fair choice and ironically states, “Actual choices promote competition and benefit everyone. Users should be able to choose an AL assistant.”
According to the complaints, the real award is data. Generated AI creates a smarter, better, and more powerful feedback loop, making it smarter, better and more powerful.
By providing ChatGPT’s exclusive access to potential billions of prompts from hundreds of millions of iPhones, the partnership effectively builds an inexplicable “moat” around Openai’s market leadership. It helps them maintain the suspicion of AI monopoly as they are hungry for the data competitors they need to improve their own models and truly compete.
This data stream is extremely valuable, the lawsuit claims Openai is offering Apple the technology for free, taking into account access “of equal or greater value than monetary payments.”
As to why Apple agrees to this, the lawsuit argues that it is the rise of “super apps,” a defensive move against existential threats. These all-in-one applications (similar to the popular Chinese platform WeChat, as one X is building) combine social media, messaging, payments and other services into a single platform.
These super apps will reduce the importance of smartphones themselves as they become more powerful with cloud-based AI services. Users can purchase cheaper phones, get all the necessary features from the app, and threaten Apple’s favorable hardware sales.
The complaint claims Apple is keenly aware of this danger, citing a manager at one company who warned that taking over the super app was like allowing “barriers at the gates.”
However, the claims do not stop with a merged transaction. The exclusive lawsuit also accuses Apple of using iron grips on the App Store to tilt the scale from certain AI apps.
The lawsuit alleges that X and Xai’s highly ranked apps have been intentionally buried and removed from the App Store’s prestigious “required apps” list, but ChatGpt has been featured prominently. This is said to be backed up by a postponed approval of GROK app updates, further enhancing its competitive capabilities.
X and Xai allege that this act is harming everyone. By suffocating competition, this partnership is said to result in less consumer innovation, fewer options and higher prices. The broader AI exclusive lawsuit aims to demolish the arrangement and recover the value and sales that have lost billions of dollars.
(Photo: Julian Hochgesang)
reference: Proton’s Privacy First LUMO AI Assistant Gets a Large Upgrade
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