Elon Musk's xAI sues Apple and OpenAI over alleged anti-competitive practices

Elon Musk’s artificial intelligence venture, xAI, has filed a lawsuit against Apple and OpenAI in a US federal court in Texas, accusing the two tech giants of colluding to suppress competition in the AI sector.

The complaint claims that Apple and OpenAI have effectively “locked up markets” to protect monopolies and block rivals, including xAI, from competing fairly.

A central focus of the lawsuit is Apple’s exclusive integration of OpenAI’s ChatGPT chatbot into its iPhone operating system. xAI argues that this deal gives ChatGPT an unfair advantage, limiting the visibility of competing AI chatbots such as xAI’s Grok on the Apple App Store.

According to the suit, Apple’s arrangement makes ChatGPT the only generative AI chatbot natively available on its devices, discouraging users from installing alternatives.

The complaint also alleges that Apple has deliberately “deprioritised” Grok and slowed the approval process for its updates, further restricting its reach.

xAI maintains that without this exclusive deal, Apple would have no reason to hinder its app’s visibility, and that such actions stifle innovation and investment in generative AI chatbots and broader AI super apps.

Here's what happens when asking ChatGPT if the integration with Apple iOS is monopolistic behavior...

"The DOJ or FTC would very likely frame this as unlawful exclusive dealing/monopolization under U.S. antitrust law. The situation is closest to the Microsoft browser case and… pic.twitter.com/V09KDHENbK

— Jon Shulkin (@jonshulkin) August 26, 2025

AI startup xAI has acquired X in $33bn stock deal: Elon Musk

Apple commands roughly 65 per cent of the global smartphone market, giving it significant influence over app distribution.

xAI argues that this dominance, combined with the exclusive ChatGPT integration, has enabled OpenAI to secure a first-mover advantage, consolidate its market position, and grow its user base while limiting opportunities for competitors.

The lawsuit seeks both monetary damages and a court injunction to prevent Apple and OpenAI from continuing the alleged anti-competitive conduct.

While Musk has publicly criticised Apple’s practices before, neither Apple nor OpenAI has provided immediate comments on the latest legal action. Previously, Apple has defended its App Store policies as fair and impartial, while OpenAI described Musk’s claims as part of an ongoing pattern of harassment.

The legal battle underscores growing tensions in the AI industry, highlighting concerns about market concentration, restricted consumer choice, and barriers to innovation in generative AI technology.

xAI’s complaint paints a picture of Apple and OpenAI leveraging their dominant positions to suppress emerging competitors and protect established market advantages.