Elon Musk’s xAI has accused Apple and OpenAI of stifling rival AI platforms.
Elon Musk’s artificial intelligence venture, xAI, has launched a high-stakes legal battle against tech giants Apple and OpenAI, accusing them of colluding to suppress competition in the rapidly evolving AI sector.
Filed Monday (25.08.25) in a US federal court in Texas, the lawsuit alleges that Apple and ChatGPT creator OpenAI have formed an exclusive partnership that unfairly dominates the AI marketplace. According to xAI, this alliance has created a “locked-up” ecosystem that stifles innovation and prevents rival platforms – specifically Musk’s own X and Grok apps – from gaining visibility and traction.
The complaint points to Apple’s integration of ChatGPT into its operating systems for iPhones, iPads, and Macs as a key example of monopolistic behaviour. xAI argues that Apple’s refusal to feature Grok more prominently in the App Store is directly tied to its preferential treatment of OpenAI.
The lawsuit states: “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.”
xAI is reportedly seeking billions of dollars in damages.
OpenAI responded swiftly, dismissing the lawsuit as part of what it called Musk’s “ongoing pattern of harassment.”
Musk, never one to shy away from public commentary, took to his social platform X to voice his frustration: “A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists.”
He recently claimed that Apple’s practices “make it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
The legal clash marks a dramatic escalation in the battle for dominance in consumer-facing AI, pitting one of the world’s most outspoken tech moguls against two of the industry’s most powerful players.
Elon Musk’s xAI sues Apple and OpenAI over AI competition
