Apple, OpenAI Seek Dismissal in xAI Lawsuit

Elon Musk’s xAI has sued OpenAI alleging former xAI employees passed source code and business secrets to OpenAI and has separately accused Apple of favoring ChatGPT in iPhone AI integration, including detailed claims of code exfiltration and targeted recruiting. OpenAI has called the trade-secret suit groundless, denied it needed xAI’s intellectual property, accused Musk of using litigation as harassment or “lawfare,” and recounted Musk’s past demands for board and CEO control and claims he withheld promised funding. Apple has asked a judge to dismiss xAI’s antitrust complaint, arguing its deal with OpenAI is not exclusive, antitrust law does not require partnering with every chatbot, and it intends to work with multiple generative-AI providers. The filings and public statements have turned the dispute into simultaneous legal and public-relations battles, with Apple and OpenAI seeking dismissal while xAI presses claims that could lead to prolonged litigation over hiring practices, trade secrets and platform competition.