Musk firms exit Apple case, retain OpenAI claims

A US federal judge has directed X Corp and SpaceXAI, formerly known as Musk's X and xAI, to disclose any agreement with Apple tied to their termination of antitrust claims against the tech giant. This came after the companies moved to dismiss those claims with prejudice in September, a move that would prohibit them from re-filing those allegations.

The resolution of the Apple dispute, while keeping the OpenAI claims intact, has shifted the focus of the proceedings. OpenAI, which was not part of the Apple resolution, has requested the court to compel disclosure, arguing that the undisclosed Apple arrangement could impact its defense and the damages being sought. Despite the companies' denial of wrongdoing, the lawsuit accuses Apple and OpenAI of using their commercial relationship to stifle competition in generative artificial intelligence and smartphone markets.

The court's order to preserve claims against OpenAI, while dismissing those against Apple, signifies the AI developer remains the primary defendant. Apple's refusal to comment on the resolution and Musk's companies' lack of disclosure about financial terms or formal settlement details leaves much of the specifics shrouded in mystery.

The "with prejudice" language employed in the motion bars X and SpaceXAI from re-litigating against Apple, further distinguishing this resolution from a temporary pause.