Musk’s xAI sues Apple, OpenAI over antitrust collusion in AI market
3 Min Read
Elon Musk’s companies xAI and X have filed a federal lawsuit accusing Apple and OpenAI of colluding to stifle competition by giving ChatGPT exclusive access to iPhones, blocking rivals like Grok from fair market access.
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Tesla and SpaceX's CEO Elon Musk attends the first plenary session on of the AI Safety Summit at Bletchley Park, on Wednesday, Nov. 1, 2023 in Bletchley, England. (AP)
Elon Musk’s companies, xAI and X, have filed a sweeping antitrust lawsuit in a US federal court, accusing tech giants Apple and OpenAI of forming an illegal partnership that allegedly stifles competition in both the artificial intelligence and smartphone markets.
The 61-page lawsuit, filed Monday in Texas, claims that Apple and OpenAI are engaged in exclusionary practices, particularly by integrating ChatGPT as the sole generative AI assistant within Apple's iPhone operating system, thereby sidelining competitors such as xAI’s 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 states.
Exclusive deal allegedly blocks competition
The suit alleges that Apple, which holds a 65% share of the US smartphone market, and OpenAI, which reportedly controls at least 80% of the generative AI chatbot market, are leveraging their market dominance to unfairly restrict user access to competing technologies.
Apple and OpenAI publicly announced their partnership in June 2024, integrating ChatGPT into key iPhone functionalities, including Siri and other native applications.
Musk’s legal team argues that this arrangement grants ChatGPT exclusive access to billions of user prompts from iPhone users globally, a competitive advantage not extended to other AI platforms.
Beyond the exclusive integration, the complaint accuses Apple of deliberately manipulating App Store rankings to promote ChatGPT, while simultaneously delaying the approval of updates to the Grok app, a move the plaintiffs allege is part of a broader strategy to suppress competition.
The companies are seeking billions in damages and a permanent injunction to halt what they describe as anticompetitive practices. A jury trial has been requested.
Apple and OpenAI have not yet responded publicly to the lawsuit.
Read more: Could Musk abuse his governmental position to target OpenAI?
Musk-Altman feud resurfaces
The lawsuit follows a series of public exchanges between Musk and OpenAI CEO Sam Altman, escalating tensions between the two former co-founders of OpenAI. Earlier this month, Musk accused Altman and Apple of suppressing Grok’s visibility on iOS, prompting a sharp rebuke from Altman.
Altman called Musk’s claims “remarkable,” accusing him of manipulating the X platform to serve his own corporate interests. Musk responded by calling Altman a “liar.”
Musk left OpenAI in 2018 and later launched xAI in 2023 as a direct competitor in the fast-growing field of artificial intelligence.
Read more: How Sam Altman became Trump's AI buddy, leaving Elon Musk in the dust
