Elon Musk's xAI Sues Apple and OpenAI for Alleged Monopolistic Practices

Elon Musk's xAI has sued Apple and OpenAI for allegedly thwarting competition in the AI market. Musk claims Apple is promoting OpenAI's ChatGPT and suppressing the Grok AI chatbot in the App Store. The lawsuit accuses Apple of protecting its smartphone monopoly and partnering with OpenAI, a monopolist in the generative AI chatbot market.

Elon Musk's artificial intelligence startup, xAI, has filed an antitrust lawsuit in Texas against Apple and OpenAI, alleging that the App Store unfairly promotes OpenAI's ChatGPT and discriminates against Musk's platforms, including X and the Grok AI chatbot [4]. The lawsuit, filed on August 25, 2025, accuses Apple of protecting its smartphone monopoly and partnering with OpenAI, a monopolist in the generative AI chatbot market [2].

According to the lawsuit, Apple's App Store rankings favor OpenAI's ChatGPT over competing AI apps, constituting an antitrust violation. Musk claims that Apple's "Must Have" section excludes xAI's Grok AI chatbot and X, the top news app, despite their high rankings [4]. Apple responded by asserting that its App Store curation relies on expert algorithmic recommendations and is "fair and free of bias" [4].

The legal action comes amidst escalating tensions between Musk, Apple, and OpenAI. Musk has previously threatened to sue Apple for its alleged behavior, stating that "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store" [1]. Musk's lawsuit against OpenAI over its profit model is also ongoing, with a trial scheduled for Spring 2026 [4].

In a separate move, Musk has released parts of the Grok AI model under an open-source license, aiming to boost developer adoption and user interest while narrowing the gap with rivals such as OpenAI and Google [3]. The release of AI model source code, albeit with restrictions, has accelerated the development of new applications and services built on top of them.

The lawsuit is a significant development in the ongoing competition between Musk's xAI and other AI companies. It highlights the potential regulatory challenges faced by tech giants as they expand into AI and other emerging technologies. Investors should closely monitor the outcome of this case, as it could set a precedent for future antitrust lawsuits in the AI market.

References:
[1] https://www.reuters.com/legal/litigation/elon-musks-xai-sues-apple-openai-over-ai-competition-app-store-rankings-2025-08-25/
[2] https://www.bloomberg.com/news/articles/2025-08-25/musk-sues-apple-openai-over-alleged-ai-arrangement-on-iphones
[3] https://stocktwits.com/news-articles/markets/equity/elon-musk-open-sources-old-grok-ai-model-to-woo-developers-as-rivarly-with-openai-google-gemini-heats-up/chssKSFRd1P
[4] https://www.quiverquant.com/news/xAI+Files+Antitrust+Lawsuit+Against+Apple+and+OpenAI%2C+Alleging+App+Store+Bias