Elon Musk Just Found Apple's Secret ChatGPT Deal - And He's Taking Them to Court
4IR - Daily AI News
Welcome back to 4IR. Here's today's lineup:
xAI sues Apple and OpenAI for antitrust violations - Musk alleges ChatGPT gets preferential App Store treatment over Grok
Malaysia launches world's first AI-powered bank - Ryt Bank speaks three languages and lets you pay bills with photos
Military robotics market to hit $24.6B by 2033 - Defense spending drives autonomous systems while consumer robots struggle
🔥 TOP STORY: Musk files federal antitrust lawsuit against Apple and OpenAI
The story: Elon Musk's xAI filed a federal antitrust lawsuit Monday in the Northern District of Texas, accusing Apple and OpenAI of illegally conspiring to maintain monopolies in smartphones and generative AI. The suit claims Apple's exclusive iOS integration of ChatGPT and App Store ranking practices unfairly disadvantage competitors like Grok. xAI seeks billions in damages and injunctive relief to force changes in how Apple distributes AI apps to its 2 billion iOS users.
What we know:
Lawsuit alleges violation of Section 2 of Sherman Antitrust Act
Claims ChatGPT gets preferential App Store rankings over competitors
Filed jointly by xAI and X (formerly Twitter) after March merger
Apple reportedly exploring Google Gemini partnership to diversify from OpenAI
OpenAI calls lawsuit "consistent with Mr. Musk's ongoing pattern of harassment"
Why it matters: This lawsuit targets the crucial distribution bottleneck for consumer AI—Apple's iOS ecosystem. With 2 billion devices worldwide, whoever wins default AI assistant status on iPhone essentially wins the consumer market. The case could force Apple to open iOS to competing AI assistants, fundamentally changing how billions of people access AI technology.
The timing is strategic. Apple's reported talks with Google's Gemini suggest even they recognize the risks of exclusive OpenAI dependence. Meanwhile, Meta just announced a Midjourney licensing deal, showing how quickly AI alliances are shifting. This isn't just about market share—it's about who controls the gateway between AI models and mainstream users. The outcome could determine whether AI distribution remains concentrated or becomes more democratized.
🏛️ POLICY: Malaysia makes history with Ryt Bank, world's first AI-powered bank
The story: Malaysia launched Ryt Bank on August 25, claiming the title of world's first fully AI-powered digital bank. Led by YTL Group in partnership with Sea Limited, the bank features Ryt AI powered by ILMU, Malaysia's first homegrown large language model. The system understands natural conversation in Bahasa Malaysia, English, and even "Manglish," with Mandarin coming in September. Users can conduct banking through chat, upload photos of bills for instant payment, and earn up to 4% annual interest.
What we know:
Licensed by Bank Negara Malaysia with PIDM protection up to RM250,000
Offers instant account opening in 2 minutes via app
Features biometric verification and real-time fraud monitoring
Partners include Shopee (vouchers) and YTL Hotels (dining discounts)
Built specifically for Malaysian cultural and linguistic diversity
Why it matters: While Western banks debate AI integration, Malaysia just leapfrogged everyone with a ground-up AI-first approach. This shows how smaller markets can innovate faster by avoiding legacy infrastructure constraints. The multilingual capability and cultural adaptation could become a model for AI banking in diverse markets globally.
Malaysia's move is particularly clever—instead of retrofitting AI onto existing systems, they built banking around AI from day one. The focus on local languages and cultural context shows sophisticated thinking about AI deployment in non-Western markets. This could inspire similar initiatives across Southeast Asia and beyond, especially in countries looking to establish tech sovereignty.
⚖️ REGULATION: $600M+ floods AI startups as venture capital defies slowdown fears
The story: Sunday saw exceptional venture activity with over $600 million invested across 16 AI startups in a single day. Nuro led with $203M at a $6B valuation (Nvidia leading, Uber joining), followed by Aalo Atomics raising $100M to build modular nuclear reactors specifically for AI data centers. Eight Sleep secured $100M for its AI Sleep Agent that optimizes rest through biometric monitoring. The diversity spans from ocean carbon capture (Equatic, $11.6M) to RNA medicines (Arnatar, $52M).
What we know:
Nuro partnering with Uber for autonomous vehicle deployment
Aalo Atomics addressing critical AI energy infrastructure needs
Healthcare AI captured 62% of digital health VC in H1 2025 ($4B total)
Manufacturing showing 77% AI adoption rate industry-wide
Oracle embedding GPT-5 across entire cloud portfolio
Why it matters: This funding surge directly contradicts the "AI fatigue" narrative. VCs are betting heavily on infrastructure (nuclear power for data centers), applications (sleep optimization, drug discovery), and platforms (autonomous vehicles). The breadth shows AI moving from experimental to essential across every industry vertical.
The Aalo Atomics deal is particularly revealing—investors recognize that AI's energy demands require fundamental infrastructure changes. Building nuclear reactors specifically for AI compute shows how seriously the industry takes scaling challenges. Meanwhile, Oracle going all-in on GPT-5 while competitors diversify suggests different strategies for capturing enterprise AI value. The market is maturing from "AI for everything" to targeted, practical applications with clear ROI.
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