In a bold legal move, X Corp., alongside its subsidiary X.AI LLC, has initiated a federal lawsuit against tech giants Apple and OpenAI. The lawsuit, filed in the US District Court for Northern District of Texas, centers on allegations that the exclusive integration of ChatGPT into Apple's iOS devices breaches federal competition laws.

X Corp. argues that this partnership has further cemented Apple and OpenAI's dominant positions in the smartphone and AI chatbot markets respectively. According to the complaint, Apple holds a 65 percent market share in US smartphones, while OpenAI controls 80 percent of the generative AI chatbot sector. The plaintiffs claim these figures represent an unlawful restraint of trade, stifling competition through monopolistic practices under the Sherman Act.

The legal filing specifically targets the practices around the AI chatbot 'Grok', developed by X.AI. The suit accuses Apple of manipulating app store algorithms to lower Grok’s visibility and delaying updates for Grok, while favoring ChatGPT. This, according to X.AI, mirrors tactics scrutinized in the landmark antitrust case against Microsoft in 2001.

Moreover, the lawsuit cites violations of the Texas Business and Commerce Code, accusing both Apple and OpenAI of engaging in conspiratorial trade restraints. X Corp. seeks a permanent injunction to prevent further alleged anti-competitive practices and is also pursuing treble damages, which could amount to billions of dollars. However, proving antitrust injury could be a significant challenge for X Corp. as they need to demonstrate harm caused by reduced competition rather than mere business rivalry.

This lawsuit comes at a time when both defendants are under intense scrutiny in other legal and regulatory matters. Apple recently faced challenges with data access mandates in the UK, while OpenAI's competitor, Anthropic, is dealing with a class action lawsuit over AI training practices.

The outcome of this case could have far-reaching implications for the tech industry, potentially reshaping partnerships and competitive practices among the leading tech giants. As the legal battle unfolds, all eyes will be on the Northern District of Texas to see how this high-stakes confrontation between X Corp. and two of the most influential companies in technology will progress.