TREE NEWS update: Elon Musk’s xAI and X Corp. said they have settled their antitrust lawsuit against Apple, which had accused the iPhone maker of favoring OpenAI’s ChatGPT over rival chatbot developers. The suit against Apple was voluntarily dismissed, while the case against OpenAI continues. Musk’s companies allege OpenAI maintains an illegal monopoly in the chatbot market and had sought billions of dollars in damages over Apple’s integration of OpenAI into the iPhone operating system.
Musk’s xAI Settles Antitrust Suit Against Apple, Keeps Case Against OpenAI
The split outcome matters more than the settlement itself: dropping Apple while pressing OpenAI narrows the dispute from platform distribution to the model layer, suggesting the fight is now about whether a single AI provider's default placements constitute an illegal monopoly rather than about Apple's App Store conduct. That reframing affects how other distribution deals between model developers and device makers get structured. The open question is whether the remaining case produces evidence on exclusivity terms that other AI vendors and hardware partners will have to navigate.
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