AI
Musk’s xAI and X Sue Apple & OpenAI Over Monopoly Concerns
Elon Musk’s AI firm xAI, together with social media platform X, has filed a sweeping antitrust lawsuit against Apple and OpenAI, accusing the tech giants of colluding to suppress competition in the burgeoning AI market. The lawsuit, lodged on August 25 in a U.S. federal court in Texas, alleges that Apple’s exclusive integration of ChatGPT into iOS and App Store manipulation have unfairly sidelined rival AI services like xAI’s Grok.
Core Allegations: Monopoly in AI Access and Visibility
The legal filing centers on Apple’s decision to make ChatGPT the only generative AI chatbot integrated into the iPhone ecosystem—accessible through Siri, writing tools, and camera features. According to the suit, this exclusive partnership has deprived competitors like Grok of critical visibility and user access.
In addition, the lawsuit claims Apple has been manipulating App Store rankings—delaying Grok’s updates and excluding it from “Must-Have Apps” lists—despite Grok’s commendable performance metrics. Musk argues these tactics reinforce a restrictive AI ecosystem that hinders innovation and user choice.
Seeking Damages and Structural Remedies
xAI and X are seeking billions of dollars in damages and injunctions to halt these alleged anticompetitive practices. The lawsuit underscores concerns about Apple-Saint’s “smartphone monopoly” and OpenAI’s dominance in generative AI, stressing how these forces combine to limit competition.
Legal analysts suggest the case could set significant precedent around defining competition in AI, particularly regarding how app distribution and control on dominant platforms can entrench market leadership.
Responses from OpenAI and Apple
OpenAI has dismissed the lawsuit as part of Musk’s “ongoing pattern of harassment,” while Apple reasserted that its App Store operates fairly and without bias. Neither company has issued further comment at this time.
Summary
- Plaintiff Action: xAI and X file antitrust suit in Texas.
- Defendants: Apple, for App Store favoritism; OpenAI, for exclusive integration and data advantage.
- Claims: Monopoly practices stifling competition, including manipulation of user access and rankings.
- Relief Sought: Billions in damages and injunctions to restore competitive fairness among AI platforms.
Google’s Threat Intelligence Group (GTIG) has identified at least five malware families that integrate LLMs such as Gemini and Qwen during runtime representing a shift from traditional malware toward “just-in-time code creation.” According to the report, these tools generate and obfuscate malicious scripts on demand, making detection significantly harder. For example, one family called PROMPTFLUX uses Gemini hourly to rewrite its own VBScript payloads, while another, PROMPTSTEAL, pulls Qwen from Hugging Face to dynamically craft Windows commands.
DPRK Actors Exploit AI to Target Crypto
Importantly for the crypto world, Google confirmed that the North Korea-linked threat actor UNC1069 (also known as “Masan”) has used Gemini during attacks targeting wallet data and employee access at crypto exchanges. The actor generated multilingual phishing lures, located wallet application files, and crafted scripts to access encrypted storage. GTIG emphasized the danger: AI-powered code can adapt during execution, making standard signature-based defenses less effective.
What This Means for Crypto Firms
For cryptocurrency custodians, exchanges, and wallet providers, this evolving threat landscape raises the bar for security. Key considerations include:
- Monitoring for outbound model-API requests from endpoints, which may signal malware querying LLMs.
- Strengthening endpoint telemetry and behavioural analysis to catch adaptive code, not just static malware.
- Ensuring wallet applications, employee access logs, and API endpoints are rigorously secured—especially given the DPRK actors’ focus on wallet-app data.
Outlook
While GTIG says the AI-enhanced malware is still emerging and not yet mass-deployed, the pedigree of the actors involved raises alarm. “Just-in-time code creation” allows hackers to morph their tactics mid-campaign. The takeaway: crypto firms must move beyond legacy antivirus tools and elevate detection and response to match the sophistication of these new threats.
