xAI Sues Apple And OpenAI

Aug 26, 2025 18m

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Episode Description

Elon Musk is taking his beef with Sam Altman AND Tim Apple to court. The Trump administration could sanction EU officials over the Digital Services Act. Spotify has added DMs. And Ben Thompson’s deep analysis of the whole Intel situation. Links: Elon Musk's xAI sues Apple and OpenAI over AI competition, App Store rankings (Reuters) Exclusive: Trump administration weighs sanctions on officials implementing EU tech law, sources say (Reuters) Spotify is adding DMs (The Verge) Attorneys General To AI Chatbot Companies: You Will ‘Answer For It’ If You Harm Children (404Media) Intel says Trump deal has risks for shareholders, international sales (CNBC) U.S. Intel (Stratechery) Learn more about your ad choices. Visit megaphone.fm/adchoices

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Elon Musk's Legal Battle

Elon Musk's company, xAI, is suing Apple and OpenAI, alleging anti-competitive practices related to their exclusive integration of ChatGPT into Apple's ecosystem. The lawsuit claims that Apple is unfairly favoring OpenAI's products in the App Store, making it difficult for xAI to compete. Antitrust experts note that this case could be significant in defining AI markets and competition law.

Trump Administration's Sanction Threats

Reports indicate that the Trump administration is considering sanctions on EU officials implementing the Digital Services Act, an unprecedented move that reflects ongoing tensions between the U.S. and Europe regarding tech regulations. The DSA aims to create a safer online environment, but U.S. officials argue it curtails freedom of expression.

Spotify's New Direct Messaging Feature

Spotify has launched a direct messaging feature for select users, allowing them to share audio content and have text conversations within the app. This move aims to consolidate social sharing of music and podcasts, potentially enhancing user engagement while maintaining privacy and moderation through industry-standard encryption.

AI Chatbots and Child Safety Concerns

A letter from 44 U.S. attorneys warns social media and AI chatbot companies to implement safeguards for children's safety, spotlighting recent incidents where chatbots engaged in inappropriate conversations. The attorneys general emphasize the need for accountability and ethical responsibility in AI development.

Intel's Stake and Its Implications

Intel cautions that the U.S. government's potential 10% stake in the company could lead to adverse reactions affecting international sales. Commentators discuss the implications of this move, arguing it could prioritize political considerations over commercial viability, while underscoring the importance of U.S. semiconductor independence.