And the most beautiful Apple noted that Xai is not a rival or consumer in the smartphone industry, where it claims that the competition is being damaged. Apple urged the court to reject the theory of Musk that Apple is stimulated to stimulate OpenAi to prevent the climb of Xai when building a “super app” that would make smartphones superfluous. If Musk's Super App Dream is even possible, Apple argues, it is at least ten years off, and it insists that unhappy apps should not serve as a basis for blocking Apple's measured plan to better serve customers with advanced chatbot integration.
“Antitrust laws do not require that, and for a good reason: imposing such a rule on companies would delay innovation, lower the quality and increase the costs, all ultimately harm consumers that are intended to protect the antitrust laws,” Apple argued.
Musk's Rare smartphone market claim, explained
Apple claimed that Musk's 'grievances' can be reduced to the dissatisfaction that Apple is not yet 'integrated with other generative AI chatbots' Beyond chatgpt, such as it made by Xai, Google and Anthropic. “
In a footnote, the smartphone giant noted that according to the logic of Xai Musk's social media platform X “it is possible to integrate all other chatbots – including chatgpt – on his own social media platform.”
But the antitrust legislation does not work that way, argued Apple, encouraging the court to reject Xai's claims about alleged market that “trusts a multi-step chain of speculation on top of speculation.” As Apple summarized, Xai argues that “as Apple never integrated chatgpt”, Xai could win in both chatbot and smartphone markets, but only if:
1. Consumers would choose to send additional instructions to Grok (instead of other generative AI chatbots).
2. The extra instructions would lead to a grok scale and quality that otherwise could not reach.
3. As a result, the X app would grow in popularity because it was integrated with grock.
4. X and XAI would therefore be better positioned to build so-called “super apps” in the future, which defines the complaint as “multifunctional” apps that offer “social connectivity and messages, financial services, e-commerce and entertainment.”
5. Once developed, consumers can choose to use Xs “Super App” for different functions.
6. “Super Apps” would replace much of the functionality of smartphones and consumers would give less to the quality of their physical phones and instead rely on this hypothetical “super apps”.
7. Manufacturers of smartphones would respond by offering more basic models of smartphones with less functionality.
8. IPhone users would decide to replace their iPhones with more “basic smartphones” by “Super Apps”.
Apple insisted that nothing in his OpenAi deal prevents Musk from building his super apps, while noting that Musk of the integration of grok in X, understands that the integration of a single chatbot is a “big company” that requires “substantial investment”. That “concession” only “underlines the massive sources that Apple should devote to integrating every AI chatbot in Apple Intelligence,” while navigating potential risks for user safety.
