Elon Musk’s X and xAI sue Apple and OpenAI over alleged anticompetitive practices

Earlier this month, Musk alleged on X that Apple’s integration with OpenAI makes it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”

By Storyboard18| Aug 26, 2025 8:32 AM

Elon Musk’s X and xAI sue Apple and OpenAI over alleged anticompetitive practices

The lawsuit stems from the mass layoffs that followed Musk’s acquisition of Twitter in 2022, during which approximately 6,000 employees were dismissed.

Elon Musk’s companies X and xAI have filed a lawsuit against Apple and OpenAI, accusing the two firms of colluding to block competition in the artificial intelligence market.

The suit claims Apple is “desperately” protecting its smartphone dominance by partnering with OpenAI, which it labels “a monopolist in the market for generative AI chatbots.” Apple announced the partnership last June, with ChatGPT integration expected to roll out on its devices by December.

The legal action marks the latest escalation in the Musk–Altman feud. Musk, a co-founder and former co-chair of OpenAI, has repeatedly attacked the company’s for-profit structure. Earlier this year, he filed a separate suit challenging OpenAI’s nonprofit-to-for-profit transition and even made an unsolicited $97.4 billion takeover bid, which was rejected.

Earlier this month, Musk alleged on X that Apple’s integration with OpenAI makes it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”