Billionaire entrepreneur Elon Musk’s AI startup xAI has filed a lawsuit in U.S. federal court in Texas against Apple and OpenAI, accusing them of illegally conspiring to stifle competition in the artificial intelligence sector.
The suit claims Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” Apple’s integration of OpenAI’s ChatGPT into iPhones, iPads, and Macs is cited as evidence of exclusivity that disadvantages rival apps such as Musk’s X app and Grok chatbot.
xAI is seeking billions of dollars in damages, alleging that Apple’s deal with OpenAI unfairly restricts competition.
OpenAI dismissed the lawsuit, calling it part of Musk’s “ongoing pattern of harassment,” while Apple has not yet commented.
Earlier this month, Musk threatened legal action against Apple, accusing it of making it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”
Background and Competition
- OpenAI’s ChatGPT became the fastest-growing consumer app in history after its late 2022 launch.
- Musk’s xAI, launched less than two years ago, acquired X in March for $33 billion to boost chatbot training and has since integrated Grok into Tesla vehicles.
- xAI competes with Microsoft-backed OpenAI and rising Chinese startup DeepSeek.
- Musk is also suing OpenAI and CEO Sam Altman in California, aiming to challenge its shift from a nonprofit to a for-profit entity.
Apple’s App Store Scrutiny
Apple’s practices have long faced legal challenges. In a notable case brought by Epic Games, the maker of “Fortnite,” a judge ordered Apple to allow more competition in app payment options.
This latest lawsuit intensifies the battle between Musk, Apple, and OpenAI in the rapidly expanding AI industry.
