KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
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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