The New AI Market Reality: From Innovation Battles to Platform Access Wars

The world of artificial intelligence (AI) is changing faster than ever. For years, the focus was on who could build the most innovative technology. But that game is shifting. Today, success in the AI industry isn’t just about brilliant engineering or groundbreaking models — it’s about access, distribution, and platform control.

One recent event perfectly illustrates this: Elon Musk’s lawsuit against Apple and OpenAI.

Musk vs Apple and OpenAI: The Lawsuit That Sparked Debate

Despite Musk’s Grok AI ranking fifth globally and his social platform X holding the top spot as the most-used news app, Musk claims Apple’s exclusive partnership with OpenAI creates hidden barriers that make it harder for other AI players to compete.

Here’s the surprise: even after the Apple–OpenAI deal, some AI apps have still managed to hit #1 in the App Store. But Musk argues this misses the bigger point.

Platform Owners Are Becoming the Kingmakers

Apple now controls around 28% of the global smartphone market, reaching an estimated 1.8 billion active devices. That means its App Store decisions directly affect which apps get visibility and which are buried.

This level of control makes platform owners — Apple, Google, and others — the real kingmakers of the AI industry.

For startups, this changes the rules:

• Having the best AI technology no longer guarantees success.

• Strategic partnership deals can be more important than the product itself.

• Platform relationships often decide whether a company thrives or fades away.

  
  

The New Startup Playbook

Imagine you’re an AI founder. You raise £40 million. You hire some of the best engineers in the world. You build an incredible AI model that genuinely outperforms competitors.

But here’s the catch: if you can’t secure visibility on major platforms like the App Store, none of it matters. Users may never even discover your work.

This marks a fundamental shift:

• The old merit-based competition (where the best technology won) is fading.

• A new distribution game has emerged, where platform monopolies decide who gets ahead before users even have a chance to choose.

  
  

What This Means for the Future of AI

Every AI company now faces a big strategic question:

Should you optimise for innovation, building the most advanced technology? Or should you prioritise platform relationships, ensuring your product has access to users through the right partnerships?

The answer could decide whether you become the next breakthrough success — or another casualty in the growing AI access wars.

Final Thought

The future of AI competition shouldn’t be controlled behind closed doors. Ideally, users should be the ones to decide which apps and models succeed. But if current trends continue, it may be the platforms — not the market — that determine the winners.

So, where do you stand? Should the AI industry be shaped by innovation and user choice, or by exclusive platform partnerships?

Share your thoughts in the comments — this debate is just getting started.