Elon Musk’s AI venture, xAI, has filed a federal lawsuit accusing Apple and OpenAI of colluding to stifle competition in the booming artificial intelligence sector.
The suit, lodged in a Texas federal court, alleges that Apple’s exclusive partnership with OpenAI—particularly the deep integration of ChatGPT into iPhones, iPads, and Macs—creates an uneven playing field that blocks emerging competitors like xAI’s Grok chatbot.
xAI claims the tech giants “locked up markets to maintain their monopolies,” and is seeking billions in damages.
The Core Dispute
According to the complaint, Apple’s decision to spotlight ChatGPT while limiting visibility for rival platforms is at the heart of the issue. The lawsuit argues that without the exclusivity deal, Apple would have “no reason” to downplay xAI’s offerings in the App Store.
Musk, who has repeatedly criticized Apple’s partnership with OpenAI, recently claimed the arrangement makes it “impossible” for other AI firms to break through to the top of the App Store rankings.
OpenAI Pushes Back, Apple Silent
OpenAI dismissed the case outright. A spokesperson described the filing as “consistent with Mr. Musk’s ongoing pattern of harassment,” signaling that the company intends to fight the claims aggressively. Apple has yet to comment.
Why This Lawsuit Could Set a Precedent
Legal scholars say this case could become a landmark moment for AI competition law in the United States. Christine Bartholomew, a law professor at the University at Buffalo, called the lawsuit “a canary in the coal mine” for how courts may interpret antitrust principles in the AI space.
Apple, which maintains a dominant position in the smartphone ecosystem, is expected to argue that its deal with OpenAI was made under normal market conditions and that it has no obligation to promote rival apps.
If successful, Musk’s lawsuit could shake up how tech giants structure AI partnerships and App Store promotion strategies—an area regulators are already scrutinizing globally.
