Apple is firing back at Tesla CEO Elon Musk over his accusations against the tech giant’s Apple store policies.
Apple has rejected accusations from Musk that its App Store stifles competition, insisting it is “designed to be free and fair of bias.”
Musk has threatened Apple with legal action after claiming it had made it “impossible” for apps to compete with ChatGPT-maker OpenAI in the store.
In June 2024, Apple launched Apple Intelligence, a new AI framework integrating OpenAI’s ChatGPT (powered by GPT 4o) into iPhones, iPads, and Macs. This integration enhances Siri, Writing Tools, and the Image Playground, enabling users to generate text, rewrite content, summarize, and create images using natural language. Apple uses a hybrid approach: most AI processing runs locally on devices, while complex queries are securely sent through Apple’s Private Cloud Compute—which encrypts, anonymizes, and ensures privacy by preventing data from linking to Apple IDs unless the user signs in with OpenAI.
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Privacy is central to Apple’s AI strategy. Users must opt in before any ChatGPT queries reach the cloud, and without an OpenAI login, OpenAI doesn’t store or track user data. Independent experts can audit Apple’s privacy infrastructure to verify compliance.
Despite this strong privacy focus, Apple’s AI rollout has faced delays and criticism. The promised major overhaul of Siri, designed to be more conversational, context-aware, and deeply integrated, has been postponed and is unlikely to arrive before 2026. This delay has raised concerns among investors and analysts, who worry Apple’s cautious and privacy-first approach may hinder its competitiveness against faster-moving rivals like Google and Microsoft.
Additionally, in August, Musk’s AI company xAI publicly accused Apple of favoritism toward OpenAI in App Store rankings, alleging suppression of his Grok app and threatening legal action for antitrust violations. Apple and OpenAI have denied these claims, emphasizing that rankings are engagement-based and that multiple AI apps—including Grok’s competitors—continue to rank highly. Apple has affirmed its openness to supporting multiple AI models in the future.
Musk also called OpenAI boss Sam Altman a “liar” — after Altman claimed Musk used his platform to “benefit himself and his own companies.”
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Musk, who co-founded OpenAI but later distanced himself due to disagreements over AI safety and direction, launched his own AI company, xAI, to compete directly with OpenAI’s ChatGPT. The rivalry escalated when Musk accused Apple of favoring OpenAI by allegedly blocking xAI’s Grok app from topping App Store rankings. He publicly threatened legal action, claiming Apple’s favoritism harmed his company’s growth and violated antitrust laws.
Altman responded by dismissing Musk’s allegations as baseless and a distraction from real AI progress. He criticized Musk’s public attacks as part of a pattern of undermining competitors while simultaneously attempting to dominate the AI landscape himself. The tension reflects broader clashes between Silicon Valley’s leading tech figures over the future of AI development, ethics, and control.
Despite the public spat, both men influence AI’s trajectory significantly. Altman’s OpenAI continues to expand its partnerships and technology adoption, while Musk pushes xAI to differentiate itself with a focus on integration with his other ventures including X and Tesla. The feud exemplifies the high stakes and fierce competition driving the rapid evolution of AI.