Apple-Google AI Deal: What has Elon Musk so worried about Google’s growing AI grip?

Apple‑Google AI tie‑up: Apple and Google have entered into a multi-year collaboration agreement under which the next generation of the Apple Foundation model will be based on Google’s Gemini model and cloud technology. Criticising Apple’s decision to adopt Google’s Gemini model, Tesla CEO and AI firm xAI founder Elon Musk on Tuesday, January 13, called it an “an unreasonable concentration of power” for Google. He posted his criticism on the social media platform X.

“This seems like an unreasonable concentration of power for Google, given that they also have Android and Chrome,” CEO Musk wrote.

Antitrust concerns loom over Google

The dispute comes as Apple tries to address its shortcomings in generative AI, and Google faces ongoing antitrust investigations in the US and abroad over its dominance in search, advertising and browsers.

xAI lawsuit against Apple and OpenAI

Additionally, Elon Musk’s AI firm xAI is already suing Apple and OpenAI over the integration of ChatGPT as an optional add-on into Siri and Apple Intelligence. The CEO alleged that Apple’s App Store practices are detrimental to rivals like Grok, and according to multiple reports, the lawsuit is set to proceed despite the initial dismissal.

The row also followed international backlash for Grok, which has been blocked in countries including Indonesia and Malaysia after allegations it generated non‑consensual sexualised images, including content involving minors. India’s Ministry of Electronics and Information Technology (MeitY) also took action against X Corp for failing to prevent the creation and dissemination of obscene, nude and indecent content on its platform.

Google recently announced the launch of new experiences powered by Gemini, including AI Inbox, to provide more useful and personalised information to its users. The company said the new features have started rolling out to Gmail users in the US as well as Google AI Pro and Ultra customers.

Earlier this month, xAI announced the completion of a $20 billion funding round from investors including Nvidia Corp., Valor Equity Partners and Qatar Investment Authority. The company has already raised about $10 billion in corporate equity and debt, but it is spending about $1 billion per month through 2025. Tesla CEO Musk previously confirmed that xAI is expanding its data centre capacity in Memphis to about 2 gigawatts.