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Musk’s xAI drops antitrust suit against Apple

Elon Musk’s xAI and X Corp. have agreed to withdraw an antitrust lawsuit against Apple Inc., which accused the iPhone maker of favouring OpenAI’s ChatGPT over competing artificial intelligence chatbots.

In a filing on Monday, the two companies asked a federal judge in Texas to approve the voluntary dismissal of their claims against Apple.

However, the companies said their claims against OpenAI, which was also named in the lawsuit, remain unresolved.

The lawsuit, filed by Musk’s companies in August, accused OpenAI of unlawfully maintaining a monopoly in the chatbot market through anti-competitive practices.

Musk’s companies had sought billions of dollars in damages, arguing that Apple’s decision to integrate OpenAI’s technology into its iPhone operating system restricted competition and innovation in the AI industry while limiting consumer choice.

Apple and OpenAI have denied the allegations, maintaining that their partnership was not exclusive. The agreement allows iPhone users to access ChatGPT through Siri and use OpenAI’s technology in certain iPhone features.

OpenAI also described the lawsuit as part of what it called a pattern of harassment by Musk against the company he co-founded before leaving it.

Apple’s relationship with OpenAI has deteriorated significantly since the partnership was announced two years ago.

In May, Bloomberg reported that OpenAI was considering legal action against Apple after the partnership failed to deliver the expected benefits.

In July, Apple sued OpenAI over alleged trade secret theft, accusing the company and its hardware chief of taking part in a coordinated effort to obtain confidential information about its upcoming products.