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Friday, March 20, 2026

Monopoly Power in the Crosshairs: Musk’s Legal War on AI’s Giants

Elon Musk has declared a legal war on what he perceives as a budding monopoly in the artificial intelligence sector. His company, xAI, has filed a lawsuit against Apple and OpenAI, accusing them of wielding their immense market power to create an anticompetitive stranglehold on the future of AI technology.
The complaint alleges a “conspiracy” centered on the deal to build OpenAI’s technology into Apple’s software. This move, the suit claims, is a calculated abuse of monopoly power. It argues that Apple’s dominance in smartphones is being used as a lever to ensure OpenAI’s dominance in AI, creating a closed ecosystem that is hostile to competition.
This lawsuit is a manifestation of Musk’s long-stated fears about the concentration of power in the tech industry. As a co-founder of OpenAI, he has frequently argued that its partnership with large corporations betrays its original mission to democratize AI. Now, he is using the legal system to challenge the very structure of these powerful alliances.
OpenAI has pushed back, suggesting Musk’s motives are personal rather than principled, labeling the lawsuit as “harassment.” Regardless of motivation, the case brings critical questions about monopoly power in the 21st-century tech economy to the forefront, with potentially massive ramifications for how the AI industry is allowed to evolve.

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