Musk sues Apple, OpenAI over alleged antitrust violations
3 Min Read
Elon Musk's X and xAI have filed a federal antitrust lawsuit against Apple and OpenAI, accusing them of monopolistic collusion over ChatGPT's iPhone integration, seeking billions in damages and a jury trial.
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Elon Musk arrives before the 60th Presidential Inauguration in the Rotunda of the U.S. Capitol in Washington, Monday, January 20, 2025. (Chip Somodevilla/Pool Photo via AP)
Elon Musk has launched a sweeping legal challenge against Apple and OpenAI, accusing the two companies of colluding to shut rivals out of the artificial intelligence and smartphone markets.
In a lawsuit filed Monday in federal court in Texas, Musk's companies X and xAI argue that Apple's exclusive deal with OpenAI grants ChatGPT a monopoly presence on iPhones while blocking competitors such as Musk's own chatbot, Grok.
"This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the complaint reads.
The filing contends that Apple controls roughly 65% of the US smartphone market, while OpenAI holds about 80% of the generative AI chatbot market through ChatGPT. By embedding ChatGPT directly into Siri and other iPhone features under a 2024 agreement, Musk's firms argue, Apple has given OpenAI privileged access to "billions of user prompts" from hundreds of millions of devices.
The complaint further alleges that Apple has skewed its App Store rankings to benefit ChatGPT and deliberately slowed the approval of Grok updates.
Apple, however, has presented the partnership differently. When the deal was first announced in June 2024, the company described ChatGPT access as optional and opt-in, stressing that users could disable it and that other models could be added later. Whether the arrangement counts as "exclusive" will likely be a focal point in court.
Legal Demands
Musk's companies are seeking billions of dollars in damages and a permanent injunction to block what they call anticompetitive practices, and have requested a jury trial.
The suit also arrives as Apple faces broader antitrust scrutiny. Earlier this year, the US Department of Justice was allowed to proceed with a major case alleging Apple illegally monopolizes the smartphone market through its App Store rules, a backdrop that could shape how courts interpret Musk's claims.
OpenAI dismissed the lawsuit in a statement, saying, "This latest filing is consistent with Mr Musk's ongoing pattern of harassment." Apple has yet to issue a response.
The case also follows weeks of sharp exchanges between Musk and OpenAI chief executive Sam Altman. Altman described Musk's allegations of ranking manipulation as "remarkable," claiming that Musk himself "manipulates X to benefit himself and his own companies and harm his competitors and people he doesn't like." Musk replied by calling Altman a "liar."
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The feud between the two men dates back years. Musk was among the original founders of OpenAI before stepping away in 2018, later launching xAI in 2023 as a direct competitor in the race to develop advanced AI systems.
