Elon Musk's xAI Sues Apple and ChatGPT Over Alleged Monopolistic Practices

Elon Musk's AI startup xAI is suing Apple and ChatGPT creator OpenAI for allegedly conspiring to stifle competition. xAI claims that Apple's exclusive deal with OpenAI has limited the X app and Grok app's visibility in the App Store, seeking billions of dollars in damages. OpenAI denies the allegations, calling them "consistent with Mr Musk's ongoing pattern of harassment."

Elon Musk's artificial intelligence startup, xAI, has filed a lawsuit against Apple and OpenAI, alleging that the two tech giants have conspired to stifle competition in the AI market. The lawsuit, filed in U.S. federal court in Texas, accuses Apple and OpenAI of illegally suppressing xAI's products, including the X app and Grok app, on the Apple App Store. xAI claims that Apple's exclusive deal with OpenAI has limited the visibility of its apps, seeking billions of dollars in damages [1].

The lawsuit alleges that Apple and OpenAI have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing" [2]. It claims that if not for the exclusive deal with OpenAI, Apple would have no reason to refrain from prominently featuring the X app and the Grok app in its App Store.

Earlier this month, Musk publicly threatened legal action over Apple's alleged refusal to feature the X app and Grok app within the top rankings of its App Store. Musk's xAI acquired X in March for $33 billion to enhance its chatbot training capabilities and has integrated the Grok chatbot into Tesla vehicles [3].

OpenAI, which created the popular AI platform ChatGPT, has denied the allegations, calling them "consistent with Mr. Musk's ongoing pattern of harassment" [4]. Apple and OpenAI did not immediately respond to requests for comment.

This lawsuit is not the first time Musk has targeted Apple. He is also suing OpenAI and its chief executive, Sam Altman, in federal court in California to stop OpenAI's conversion from a nonprofit to a for-profit business. Musk co-founded OpenAI with Altman in 2015 as a nonprofit [3].

Apple's App Store practices have been the focus of multiple lawsuits. In one ongoing case by "Fortnite" video game maker Epic Games, a judge ordered Apple to allow greater competition for app payment options [3].

References:
[1] https://www.ctvnews.ca/business/article/elon-musks-xai-sues-apple-and-openai-over-ai-competition-app-store-rankings/
[2] https://www.cnn.com/2025/08/25/tech/elon-musk-xai-apple-openai-lawsuit-app-store-rankings
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UH0H7:0-elon-musk-s-xai-sues-apple-and-openai-over-ai-competition-app-store-rankings/
[4] https://nypost.com/2025/08/25/business/elon-musk-sues-apple-sam-altmans-openai-for-allegedly-colluding-to-crush-xai/