KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Elon Musk escalated his fight in the AI sector as xAI and X (formerly Twitter) filed suit against Apple (AAPL US) and OpenAI in the U.S. District Court for the Northern District of Texas. The complaint alleges that Apple and OpenAI colluded to stifle AI competition in the App Store, favoring ChatGPT over rival models like xAI’s Grok.
Investor Takeaway:
Apple: Near-term financial impact limited, but regulatory/legal overhang could grow if Musk’s claims gain traction.
Tesla: Lawsuit not material to fundamentals, but potential xAI stake keeps optionality alive — seen positively by Wedbush’s Dan Ives.
AI Landscape: Lawsuit signals intensifying battles over who controls AI access points — hardware (Apple), distribution (App Store), and model development (OpenAI, xAI).
Key Allegations
Apple allegedly gave preferential treatment to OpenAI’s ChatGPT in the App Store.
Musk argues this bias "thwarts competition" and locks out rivals from fair access to consumers.
Apple maintains the App Store is neutral, while OpenAI dismissed the filing as part of Musk’s “ongoing pattern of harassment.”
Market Impact
Apple (AAPL US): Shares were largely unmoved (-0.26%), reflecting skepticism that the suit poses near-term risk. With Apple trading near $229, investors see the case as reputational rather than financial at this stage.
Tesla (TSLA US): Shares rose +1.94%, though analysts noted no direct link to the lawsuit. However, speculation that Tesla could take an equity stake in xAI is keeping investor sentiment buoyant.
OpenAI: Still private, but the lawsuit underscores competitive pressure in AI distribution channels.
xAI: Musk’s startup continues to attract attention as Grok AI expands, now available in Tesla vehicles, with plans for broader integration.
Strategic Context
Tesla + xAI synergy: Musk has hinted Tesla could leverage Grok for autonomous driving and robotics, and possibly take a direct ownership stake in xAI — a move that could unlock value if xAI is monetized at scale.
Apple’s platform power: The case highlights growing antitrust scrutiny over Apple’s control of the App Store, adding to existing EU and U.S. investigations.
AI market stakes: With generative AI at the center of tech’s next growth wave, disputes over distribution, integration, and ecosystem control are becoming critical flashpoints.
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