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Billionaire entrepreneur accuses Apple and OpenAI of conspiring to suppress rivals, citing App Store favoritism and exclusive partnerships that block fair AI competition.
Elon Musk’s artificial intelligence startup, xAI, has filed a federal lawsuit in Texas against Apple and OpenAI, accusing the two companies of illegally conspiring to stifle competition in the rapidly growing AI sector.
The complaint alleges that Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” Specifically, xAI claims that Apple’s exclusive partnership with OpenAI unfairly prevents its products—such as the X app and the Grok chatbot—from gaining prominent placement in the Apple App Store.
“If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store,” the lawsuit states.
Neither Apple nor OpenAI has yet responded publicly to the lawsuit.
Musk’s Long-Running Feud with OpenAI
Earlier this month, Musk threatened legal action against Apple, arguing that its integration of OpenAI’s ChatGPT into iPhones, iPads, and Macs effectively shuts out competitors. On his social media platform X, Musk wrote that Apple’s conduct “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
Musk co-founded OpenAI with Sam Altman in 2015 as a nonprofit but later split with the company over disagreements about its direction. He has since filed a separate lawsuit in California seeking to block OpenAI’s transition into a for-profit enterprise, accusing Altman and others of betraying its founding mission.
xAI’s Expanding Ambitions
Musk founded xAI less than two years ago, positioning it as a challenger to both OpenAI and fast-rising competitors like China’s DeepSeek. In March, xAI acquired X (formerly Twitter) for $33 billion, integrating the platform into its chatbot training ecosystem. Musk has also rolled out the Grok AI assistant into Tesla vehicles, further embedding his AI ambitions across industries.
Apple’s History of Antitrust Scrutiny
Apple’s App Store practices have long been under legal and regulatory scrutiny. In a high-profile case brought by Epic Games, the maker of Fortnite, a judge ruled that Apple must allow more competition in app payment systems, though the company still maintains tight control over app distribution.
Musk’s latest lawsuit raises similar concerns, focusing on what he claims is preferential treatment for OpenAI at the expense of emerging innovators.
What’s Next
With this lawsuit, Musk is escalating his battle on two fronts: challenging OpenAI’s governance and profit model, and directly confronting Apple’s dominance in app distribution. If successful, the case could reshape not only AI competition but also the broader rules governing Big Tech partnerships.
