WSJ Tech News Briefing – TNB Tech Minute: Elon Musk’s xAI Sues Apple and OpenAI

Date: August 25, 2025
Host: Julie Chang, The Wall Street Journal

Episode Overview

This episode covers breaking developments in the tech world, focusing on Elon Musk’s xAI suing Apple and OpenAI for alleged monopolistic practices. Additional segments discuss Perplexity’s new revenue-sharing model with news publishers and Intel’s warning over U.S. government ownership. The episode delivers concise, high-impact updates on legal battles, business model innovations, and corporate governance in tech.

Key Discussion Points & Insights

1. xAI Lawsuit Against Apple and OpenAI

[00:24 – 01:13]

• Backdrop: Elon Musk’s artificial intelligence startup, xAI, has filed a lawsuit against Apple and OpenAI.
• Allegations: The suit alleges that Apple and OpenAI are "acting as monopolists."
  • Key complaint: Apple’s partnership with OpenAI makes ChatGPT the "only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions [of] iPhones."
  • There are also claims that Apple is deprioritizing rival chatbots in App Store search rankings.
• Responses:
  • Apple did not respond to requests for comment.
  • OpenAI spokesperson states: "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment." (OpenAI Spokesman, 01:09)

Notable Quote:

"According to the complaint, Apple and OpenAI's partnership makes ChatGPT the, quote, only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions iPhones."
– Julie Chang, 00:40

2. News Corp’s Connections

[01:13 – 01:27]

• The Wall Street Journal’s parent company, News Corp, has a commercial agreement for supplying news via Apple Services, plus a content licensing deal with OpenAI. The potential for conflicts of interest is briefly acknowledged.

3. Perplexity’s New Publisher Revenue Sharing

[01:27 – 01:54]

• Announcement: Perplexity, an AI startup, is launching a revenue share model for news publishers.
  • The company will pay publishers for articles used by its AI to answer user queries.
  • Payments will come from subscription revenues via a new service called Comet Plus, launching widely in fall.
• Context: This move follows a wave of lawsuits and licensing deals between AI companies and news publishers.
  • Last year, Dow Jones and New York Post (News Corp entities) sued Perplexity for copyright infringement.

Notable Quote:

"The payments will come out of the subscription revenue generated by a new news service that Perplexity plans to roll out widely this fall, called Comet Plus."
– Julie Chang, 01:40

4. Intel’s Warning Over U.S. Government Stake

[01:54 – 02:30]

• Filing: Intel reported in an SEC filing that the U.S. government’s nearly 10% ownership stake could complicate business.
  • Over 75% of Intel sales are international, creating the risk of added regulations or restrictions from other governments.
  • The stake may also "weigh on the company’s ability to pursue strategic transactions." Potential partners may be less willing to engage with Intel due to government involvement.

Notable Quote:

"Intel also says the government stake could weigh on the company's ability to pursue strategic transactions, like limiting the willingness of other parties to engage."
– Julie Chang, 02:24

Timestamps for Key Segments

• 00:24: xAI sues Apple and OpenAI—summary and details of the lawsuit
• 01:09: OpenAI spokesperson response
• 01:27: News Corp's commercial relationships with Apple and OpenAI
• 01:33: Perplexity’s revenue sharing model launch
• 01:46: Perplexity’s legal history with Dow Jones and New York Post
• 01:54: Intel’s SEC warning and concerns

Memorable Moments & Quotes

• "Elon Musk's artificial intelligence startup Xai has sued Apple and OpenAI, alleging the companies are acting as monopolists." (Julie Chang, 00:27)
• "An OpenAI spokesman said this latest filing is consistent with Mr. Musk's ongoing pattern of harassment." (OpenAI Spokesman, 01:09)
• "Perplexity is launching a new revenue share model for publishers... called Comet Plus." (Julie Chang, 01:33)

Overall Tone & Context

The episode is brisk, news-driven, and focused on the intersection of AI, big tech, and content rights. The tone is objective, straightforward, and adheres to WSJ’s style of rapid-fire, detail-oriented reporting.

For more in-depth coverage and analysis, listeners are encouraged to tune in to the next full episode of the Tech News Briefing podcast.