OpenAI Seeks Dismissal of Musk’s AI Antitrust Case, Citing SpaceX SEC Filings

In a motion filed Tuesday in federal court in Texas, OpenAI asked U.S. District Judge Mark Pittman to rule in its favor based on evidence gathered in the case, according to a Sept. 23 report by Reuters. The company contends that disclosures made in connection with SpaceX’s public listing weaken the central arguments advanced by Musk’s businesses.

The legal dispute stems from a lawsuit filed last year by Musk’s companies against OpenAI and Apple. The plaintiffs alleged that Apple’s decision to incorporate ChatGPT into its Apple Intelligence software gave OpenAI an unfair advantage over competing chatbot providers, including Musk’s xAI.

Apple and OpenAI have rejected the allegations. Apple has maintained that its arrangement with OpenAI does not prevent it from working with other AI developers, Reuters reported.

SpaceX Disclosures Become Central to OpenAI’s Defense

OpenAI’s latest filing draws on SpaceX’s securities disclosures following its June stock market debut, as well as testimony and other evidence obtained during the litigation.

According to Reuters, OpenAI argued that the information SpaceX provided to investors presents a substantially different picture of its competitive position than the one described in the antitrust complaint.

The company maintains that those disclosures undermine the plaintiffs’ allegations of commercial harm resulting from Apple’s integration of ChatGPT.

OpenAI also disputes the contention that it possesses monopoly power, an issue central to the antitrust claims.

The arguments form part of OpenAI’s effort to secure a ruling without proceeding to a full trial, which is currently scheduled for January, Reuters reported.

Related: OpenAI Challenges Secrecy of Musk Companies’ Apple Deal

OpenAI Points to Weaker-Than-Expected Apple Integration

OpenAI is also challenging the premise that its arrangement with Apple produced a substantial competitive advantage. In its court filing, the company said the integration had generated fewer additional ChatGPT users than initially anticipated. OpenAI consequently reduced its projections for the number of new logged-in weekly active users attributable to the Apple partnership, according to Reuters.

The company argued that the disappointing performance of the integration was inconsistent with allegations that the arrangement had enabled it to dominate the chatbot market among iPhone users. OpenAI said the shortfall was already apparent by the time Musk’s companies brought their lawsuit.

Those assertions remain part of OpenAI’s legal defense rather than findings by the court.

Apple’s Exit Narrows the Legal Dispute

The latest motion follows a separate development in the litigation involving Apple. Musk’s X Corp. and SpaceXAI said last week that they had resolved their claims against the iPhone maker. The terms of that resolution have not been made public, Reuters reported.

The plaintiffs are continuing their case against OpenAI, leaving the ChatGPT developer to defend itself against the remaining antitrust allegations.

The original complaint accused Apple and OpenAI of using their commercial relationship to restrict competition in the markets for smartphones and generative AI chatbots.

With Apple no longer facing those claims in the lawsuit, the proceedings are focused on the allegations against OpenAI and its arguments that the evidence does not establish an antitrust violation.

The dispute is one of several legal confrontations involving Musk and OpenAI, whose relationship has become increasingly contentious as their companies compete in the generative AI industry. Apple, OpenAI and xAI did not immediately respond to Reuters’ requests for comment on the latest filing.

The case is pending in the U.S. District Court for the Northern District of Texas, with trial scheduled for January. Pittman has not yet ruled on OpenAI’s latest request, according to Reuters.