Billionaire entrepreneur Elon Musk’s artificial intelligence company, xAI, has filed a lawsuit against Apple and OpenAI in a U.S. federal court in Texas, accusing the two firms of conspiring to suppress competition in the fast-growing AI industry.
In the suit, xAI alleged that Apple and OpenAI “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” The filing argues that Apple’s partnership with OpenAI, which brought ChatGPT integration to iPhones, iPads, and Macs, unfairly disadvantages rival AI products.
“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 stated. The company is seeking billions of dollars in damages.
Reacting to the case, an OpenAI spokesperson described the filing as “consistent with Mr. Musk’s ongoing pattern of harassment.” Apple has not yet issued a statement.
The suit follows Musk’s recent threat to sue Apple, claiming in posts on his social media platform X that Apple’s practices “make it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
Since its launch in late 2022, OpenAI’s ChatGPT has recorded explosive growth, becoming the fastest-growing consumer app in history. Musk’s xAI, founded less than two years ago, competes with Microsoft-backed OpenAI and Chinese startup DeepSeek. In March, xAI acquired X for $33 billion to strengthen its chatbot training and has since integrated its Grok chatbot into Tesla vehicles.
Legal analysts say the case could test the limits of antitrust law in the AI market. Christine Bartholomew, a law professor at the University at Buffalo, said: “This case could provide courts with their first opportunity to define the boundaries of the AI market in antitrust law. It’s a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.”
