Musk Takes on Apple & OpenAI: Explosive Lawsuit Over ChatGPT Deal

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Here’s the latest from this week in AI:

• Perplexity’s $42.5M Pitch to Publishers

• Musk’s xAI Sues Apple and OpenAI Over ChatGPT Deal

• Apple in Talks With Google to Rebuild Siri With Gemini

• Meta Taps Midjourney to Boost AI Visuals

Perplexity’s $42.5M Pitch to Publishers

Perplexity just rolled out Comet Plus, a $5 subscription that sends 80% of proceeds to publishers whose content shows up in its AI search results, browser, or tasks. The company has set aside $42.5M for payouts, with all subscription revenue (minus compute costs) going back to media outlets.

The launch comes as Perplexity faces lawsuits from Dow Jones and pushback from Forbes and Condé Nast. CEO Aravind Srinivas calls it “Apple News+ for AIs and humans,” but with just $5 to split, publishers may see this as more symbolic than sustainable.

Musk’s xAI Sues Apple and OpenAI Over ChatGPT Deal

Elon Musk’s xAI has filed a Texas lawsuit against Apple and OpenAI, claiming Apple’s deep ChatGPT integration into iOS is an antitrust violation that locks out rivals like Grok. The complaint alleges Apple manipulates App Store rankings, excludes xAI apps from “must-have” lists, and funnels users toward ChatGPT, creating an illegal moat that benefits OpenAI.

xAI is seeking billions in damages, while Apple insists its App Store is fair and OpenAI dismissed the case as harassment. The fight could set a major precedent for AI competition as Apple, OpenAI, and challengers like Musk battle for dominance in the next wave of consumer AI.

Apple in Talks With Google to Rebuild Siri With Gemini

Apple is reportedly exploring a partnership with Google to power a rebuilt Siri using Gemini, after delays pushed Siri’s major AI upgrade to 2026. Google has already trained a custom Gemini model for Apple’s servers, while the company also develops two internal versions: Linwood (Apple’s own tech) and Glenwood (external models).

Apple has also spoken with Anthropic and OpenAI, with ChatGPT already aiding Siri responses. A decision is still weeks away, but leaning on a frontier AI partner could deliver faster progress than Apple’s strained in-house efforts, which continue to lose ground to rivals.

Top Publishers Hand-Selecting Amazon Brands to Promote this Holiday Season

This holiday season, top publishers are actively sourcing brands to include in their gift guides, newsletters, listicles, reviews, and more to drive high-intent shoppers straight to Amazon storefronts.

Here’s why it matters:

• Amazon brands are seeing a 5:1 conversion rate compared to their DTC site

• Millions of shoppers discover products through trusted publishers

Levanta is working directly with these publishers to introduce them to a small number of 7–9 figure brands.

If you qualify, your products could be featured in high-traffic placements that deliver predictable CAC and directly measurable sales.

See if your brand qualifies

Meta Taps Midjourney to Boost AI Visuals

Meta has struck a partnership with Midjourney to bring the startup’s signature “aesthetic tech” into future AI products, marking a shift away from relying solely on in-house models. The collaboration will merge teams to enhance tools like Imagine, Movie Gen, and research projects such as Dino V3.

Midjourney, which recently rolled out video generation with its V1 model, stressed it remains an independent, community-driven lab. For Meta, the deal signals a push to deliver higher-quality, more artistic visuals to billions of users and a rare move to lean on an outside partner rather than just internal talent.

In Other News

Markets Steady as Trump Targets Fed and Trade

Stocks rose modestly Tuesday, with the S&P 500 and Nasdaq each up 0.4% and the Dow gaining 0.3%, while bond yields dipped and the dollar weakened. The calm session followed President Trump’s threat to fire Fed governor Lisa Cook, a move the Fed pushed back on, citing protections for its officials. Treasury Secretary Scott Bessent defended the president’s stance, while Commerce Secretary Howard Lutnick said the administration is reviewing defense contractors, boosting Lockheed Martin and Northrop Grumman shares.

Meanwhile, Trump escalated trade threats, warning of new tariffs on Europe, India, and potentially China over tech regulation and rare-earth exports. India is bracing for duties to rise to 50% Wednesday, while a Chinese negotiator heads to Washington this week. Investors now turn to Nvidia’s earnings, seen as a bellwether for the AI trade, and key U.S. inflation data later in the week.

Cool tools of the week from insidersedge.io

Vocaloid - Add lyrics & melodies to your musical compositions

Open Assistant - A conversational AI to improve your world

TradeUI - Platform for traders with options flow, technical analysis, etc.

LitGrades - Tool for students to create AI-generated flash cards

Jobs To Check Out This Week On insidersedge.io

EMEA Head AI Fintech - Prospexis.io

Marketing Manager - AI Arena

Community Manager - Origin Protocol

Senior AI ML Engineer - Kraken Digital Asset Exchange

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