Elon Musk’s xAI sues Apple and OpenAI in antitrust battle over AI Market
OpenAI rejected the allegations, saying in a statement: “This latest filing is consistent with Mr Musk’s ongoing pattern of harassment.” Apple has not yet commented.
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Elon Musk’s artificial intelligence company, xAI, has filed a lawsuit against Apple and ChatGPT creator OpenAI in a US federal court in Texas, accusing the firms of conspiring to suppress competition in the AI market.
The lawsuit claims Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” It further alleges that Apple’s exclusive deal with OpenAI, which has seen ChatGPT integrated into iPhones, iPads and Macs, has resulted in the exclusion of rival products such as Musk’s Grok chatbot.
According to Reuters, xAI argues that Apple has deliberately refrained from promoting the X app and Grok app within its App Store. The company is seeking billions of dollars in damages.
OpenAI rejected the allegations, saying in a statement: “This latest filing is consistent with Mr Musk’s ongoing pattern of harassment.” Apple has not yet commented.
On Monday, Musk echoed the lawsuit’s claims in a post on his social media platform X, pointing out that Grok had achieved “a million reviews with 4.9 average” but Apple “refuses to mention Grok on any lists.” Earlier this month, he had threatened legal action against Apple, alleging its conduct “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
The legal action comes against the backdrop of intensifying competition in the AI industry. OpenAI’s ChatGPT became the fastest-growing consumer application in history following its release in late 2022. Musk’s xAI, launched less than two years ago, acquired X in March for $33 billion to strengthen its chatbot training capabilities and has since integrated Grok into Tesla vehicles. The startup competes not only with Microsoft-backed OpenAI but also with rising rivals such as China’s DeepSeek.
Legal scholars say Apple’s dominant position in the smartphone market could support xAI’s claim that the company is unlawfully tying iPhone sales to exclusive AI services. However, experts also note Apple could argue that its partnership with OpenAI was a strategic business choice in a competitive environment and that it has no obligation to assist rivals in gaining market share.
Herbert Hovenkamp, a law professor at the University of Pennsylvania, suggested Apple may also point to security and operational reasons for integrating AI directly into its operating systems.
Beyond the specifics of the dispute, some legal academics see the case as an early test for US courts in defining the scope of the AI market. Christine Bartholomew, a professor at the University at Buffalo School of Law, described the lawsuit as “a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.”
