According to reports from Reuters, xAI and X Corp, both owned by Elon Musk's SpaceXAI, have resolved their antitrust lawsuit against Apple Inc. in a high-profile legal battle over the AI chatbot market. In a filing dated September 14, attorneys for xAI and X Corp moved to dismiss the Apple portion of the case with prejudice, with Apple not opposing the request. US District Judge Mark Pittman in Fort Worth, Texas granted the request. The filing does not explain the reasons for dismissal or disclose whether a settlement was reached, leaving the core allegation intact against OpenAI, which remains the sole defendant going forward. As per Reuters, the plaintiffs have resolved their claims against Apple but do not seek to dismiss any of their claims against Defendants OpenAI Foundation (f/k/a OpenAI, Inc.); OpenAI, L.L.C.; and OpenAI OpCo, LLC. The companies filed the dismissal on Monday, marking the official resolution of their Apple-related claims.
As reported by Reuters, the lawsuit alleged that Apple violated antitrust law by exclusively integrating OpenAI's ChatGPT into Apple Intelligence features on iPhones and other Apple devices. The complaint claimed Apple had illegally shut out rivals in its partnership with OpenAI, alleging that the companies "locked up markets to maintain their monopolies and prevent innovators like xAI and X from competing." The lawsuit, which dates to August 2025, argued that ChatGPT controlled roughly 80 percent of the chatbot market at the time, while Grok held only a few percent. It sought billions of dollars in damages and asked the court to unwind the arrangement. According to Reuters, the lawsuit accused Apple and OpenAI of conspiring to "ensure their continued dominance" in the AI market, suggesting Apple was "blindsided by major innovations in AI," leading it to team up with OpenAI in a "desperate bid to protect its smartphone monopoly."
According to the latest reports, xAI and SpaceXAI, which develops the Grok chatbot, argued that Apple's arrangement gave ChatGPT access to billions of potential user prompts through features including Siri, Apple's Writing Tools and the iPhone camera. The companies alleged that Apple disadvantaged competing AI chatbots through its App Store, including delaying app reviews and manipulating rankings. In its complaint, xAI and SpaceXAI said Apple and OpenAI had effectively combined their positions in the smartphone and AI markets to reinforce each other's dominance, accusing the defendants of violating the Sherman Antitrust Act and Texas antitrust law. As per Reuters, xAI and SpaceXAI complained that Grok did not have the same level of iOS integration as ChatGPT through Siri, and accused Apple of deprioritizing the apps of competing generative AI chatbots and X in the App Store.
According to Reuters, while xAI and X Corp have dropped their claims against Apple, they will continue to pursue claims against OpenAI, which remains a defendant in the lawsuit. OpenAI in a court filing stated it was not involved in the agreement and did not know the terms, saying it has asked xAI to make the agreement available as it would likely affect the claims in the lawsuit and OpenAI's defense. The Texas case is separate from Musk's earlier suit accusing OpenAI of abandoning its original nonprofit mission, which was dismissed by a California jury in May 2026 due to statute of limitations issues. As per Reuters, the dismissal with prejudice will prevent the claims from being refiled in the future.
As reported by Reuters, OpenAI and Apple have both denied any wrongdoing. OpenAI in a court filing accused Musk of waging "a campaign of lawfare" against it, while Apple in seeking dismissal of the lawsuit said its OpenAI integration on iPhones is not exclusive. According to Reuters, Apple said it was "widely known that [it] intends to partner with other generative AI chatbots" in the future, and said the claims were based on "speculation on top of speculation." Apple asked the court to dismiss the lawsuit back in October, but the request was denied. The recent developments come as SpaceX acquired xAI in February 2026 in a deal that valued the combined group at about $1.25 trillion, with the AI unit later branded SpaceXAI. On Stocktwits, retail sentiment around SPCX was "neutral" over the past 24 hours, while message volume increased from "low" to "normal" levels. Meanwhile, sentiment around AAPL stayed in "bullish" territory over the past 24 hours, while message volume was "high."
