Musk’s X and Apple settle antitrust lawsuit over alleged OpenAI favoring

The antitrust lawsuit brought on by Elon Musk’s X Corp. and SpaceX companies against Apple was settled in Texas federal court on Monday after Musk alleged the iPhone maker had disadvantaged his Grok artificial intelligence.The settlement brings the legal battle that began last year to a close. According to the motion filed Monday, Musk moved to dismiss the case with prejudice, and Apple agreed, but neither disclosed the terms of the agreement. Recommended Stories Musk’s companies sued Apple in August 2025, alleging that it favored OpenAI’s ChatGPT in its App Store and was integrating the AI model into its iPhone, iPad, and Mac products, making it harder for competition in the AI market. Musk’s companies alleged the arrangement gave OpenAI an unfair advantage by putting ChatGPT directly in front of millions of Apple customers. They also accused Apple of blocking other generative AI companies from climbing to the top of the App Store rankings. The companies had sought billions of dollars in damages.Apple and OpenAI denied the allegations and sought to have the lawsuit dismissed. Apple argued its agreement with OpenAI was not exclusive and did not prevent the company from partnering with other AI developers.While the debacle with Apple is settled, Musk intends to continue the lawsuit against OpenAI, which remains a defendant in the case.AI GUARDRAILS DEBATE EXPLODES: WHAT YOU NEED TO KNOWMusk cofounded OpenAI in 2015 before splitting off from the company partly over ideological differences and concerns that the direction Sam Altman and others were taking AI violated ethical boundaries. He later sued the company over its transition from its original nonprofit structure, arguing it abandoned its founding mission as it grew, but a jury rejected Musk’s claims in May.The Washington Examiner reached out to X and Apple for comment.