Elon Musk’s X Corp. and SpaceXAI dropped Apple Inc. from their antitrust lawsuit without publicly explaining the resolution. U.S. District Judge Mark Pittman ordered the companies to disclose any related agreements for private review by noon on Sept. 17.

The order follows an emergency motion from OpenAI, which remains a defendant in the case. OpenAI argued that it did not participate in the agreement between Musk’s entities and Apple, warning that undisclosed terms could affect its defense strategy.

Background of the Legal Dispute

X and then-xAI sued Apple and OpenAI for billions of dollars in August 2025. The plaintiffs alleged that the ChatGPT partnership represented "two monopolists joining forces to ensure their continued dominance." Musk had previously threatened Apple with antitrust action over alleged App Store favoritism toward ChatGPT.

Judge Pittman allowed the case to proceed in November 2025, noting that his decision did not address the merits of the claims. Apple argued that choosing "one partner first is not unlawful," while OpenAI described the litigation as a broader campaign against the company.

Apple’s Evolving AI Strategy

Apple and OpenAI announced their partnership in June 2024, integrating ChatGPT into Siri and other experiences. Since then, Apple has broadened its AI strategy beyond OpenAI.

In January, Apple struck a multi-year deal with Alphabet Inc.’s Google to use Gemini models for a revamped Siri. The company stated that its new Siri AI architecture uses Apple Foundation Models developed with Google’s Gemini technology.

Apple Inc. (NASDAQ: AAPL) rolled out iOS 27 on Monday, introducing a reimagined Siri AI assistant with daily usage limits for certain cloud-based features. The update coincides with rising pre-order wait times for the upcoming iPhone 18 lineup.

Siri AI Features and Constraints

The new Siri allows users to respond to replies for a more conversational experience and saves previous queries in a dedicated app. It uses large language models to analyze local personal data, including texts, emails, and calendar appointments. Apple stated that cloud-based features will be subject to daily usage limits, with expanded access potentially offered for a fee in the future.

The capabilities are powered by next-generation Foundation Models developed in partnership with Alphabet Inc.’s Google and its Gemini models. The service runs both on-device and through servers using Private Cloud Compute. Currently in beta and available only in English, support for French, Japanese, Korean, Portuguese, and Spanish will be added next month. The service is unavailable in the EU or China due to regulatory reasons.

Server Performance Concerns

Deepwater Asset Management’s Gene Munster reported that Apple’s servers appeared overloaded following the iOS 27 rollout, similar to the launch of Apple Intelligence in October 2024. He criticized the new Siri AI for response times of 5–15 seconds, describing them as "way too long." Munster noted that updating to the new iOS version took longer than usual after its release at 1 p.m. ET.

iPhone 18 Demand Signals

The software launch follows the unveiling of the iPhone 18 lineup, which retains the design language of the iPhone 17 Pro but features the new A20 Pro Chip. Munster highlighted that average pre-order lead times across eight countries reached 2.6 weeks three days into pre-orders, up from 1.6 weeks the previous day. This figure matches where Pro models stood at the same point last year.

Bank of America previously indicated compressed global average ship times for the iPhone 18 Pro at 14 days, down from 18 days for the iPhone 17 Pro. The Pro Max model showed lead times of 18 days, reduced from 25 days in the prior cycle. China remained the fastest market with 11-day waits for the Pro and 15 days for the Pro Max.

Analyst Outlook

Bank of America characterizes its shipping metric as "directional rather than directly comparable" against prior years due to structural differences, including the launch of only the Pro lineup this round. Higher pricing and elevated production inventory are also cited as factors that may compress lead times independent of underlying demand. Despite these mixed signals, the firm reiterated its Buy rating on Apple with a price objective of $370.

What the Numbers Show

The divergence between Bank of America’s static snapshot of 14-day Pro lead times and Munster’s observation of rising averages to 2.6 weeks suggests dynamic demand pressures emerging after the initial launch window. While BofA cautions that supply-side factors like higher channel inventory may suppress wait times, Munster’s data indicates that consumer uptake is pushing lead times back toward prior-year levels for Pro models, potentially offsetting some of the supply-side easing.