Elon Musk’s SpaceXAI is stuck facing a lawsuit over alleged data center pollution after Donald Trump failed to convince a judge that his Environmental Protection Agency (EPA) has complete control over all Clean Air Act lawsuits and can dismiss any suit at whim.

Soon after unpermitted gas turbines were discovered powering Musk’s giant Colossus data center in Memphis, Tennessee, the NAACP sued. Its lawsuit sought an injunction requiring xAI (which, following a merger, is known now as SpaceXAI) to use the best available pollution control technology when operating the turbines and ordering penalties up to $124,426 per day per violation. Without such remedies, the turbines risked drastically spiking pollution in already vulnerable neighborhoods housing predominantly Black communities nearby, the NAACP argued.

To block the lawsuit, Trump tried to intervene, arguing that the EPA had the power to unilaterally dismiss lawsuits any time the president decides against enforcing the Clean Air Act. According to Trump, it would supposedly “not serve the public interest” if citizens were allowed to seek massive civil penalties to punish polluting AI firms that were trying to get data centers operational as fast as possible to support Trump’s AI Action Plan.

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Elon Musk is seemingly done attacking Apple over its decision to integrate ChatGPT into iPhone features.

Back in 2024, when the partnership was first announced, Musk slammed the integration as an agreement from Apple to let OpenAI install “creepy spyware” on users’ devices. The next year, he sued, claiming the partnership gave the firms a “monopoly” on Apple users’ AI prompts, which allegedly harmed competition in both smartphone and chatbot markets.

For Musk, the fight with Apple seemingly escalated after he believed that his chatbot, Grok, was perhaps being illegally blocked from topping Apple’s App Store rankings. Last August, he claimed that “Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.”

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Elon Musk’s X Corp and SpaceXAI said Monday they have resolved their lawsuit in federal court in Texas alleging Apple conspired to monopolize markets for smartphones and generative AI chatbots, Reuters reports.

The companies announced the resolution on September 14th. Reuters did not report financial terms, whether any party admitted liability, or whether the case was dismissed with or without prejudice.

Reuters identified the plaintiffs as X Corp and SpaceXAI.
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MacDailyNews Note: The suit had accused Apple of conspiring to lock up the smartphone and generative AI chatbot markets.

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