Elon Musk's xAI has taken legal action against Apple and OpenAI, accusing the two tech powerhouses of engaging in anticompetitive behavior that stifles innovation and competition in the artificial intelligence (AI) space. The lawsuit, filed in a federal court in Texas, marks a significant escalation in the ongoing tensions between Musk and the broader AI industry.

The Allegations

In the 61 - page complaint, xAI contends that Apple and OpenAI have colluded to maintain their respective monopolies in the smartphone and generative AI chatbot markets. The suit alleges that Apple has used its control over the App Store to give preferential treatment to OpenAI's ChatGPT, while simultaneously disadvantaging other AI apps, including xAI's Grok.

One of the key claims is that Apple has made ChatGPT the only generative AI chatbot integrated into the iOS operating system. This, xAI argues, gives ChatGPT an unfair advantage, as it has exclusive access to the data from billions of user requests on iPhones and iPads. With Apple holding approximately 65% of the U.S. smartphone market share, this integration effectively locks out other AI competitors from a vast user base.

xAI also accuses Apple of manipulating App Store rankings to favor ChatGPT. The lawsuit states that it is nearly impossible for any AI app other than those from OpenAI to achieve a top - ranking position in the App Store. This, according to xAI, is a clear violation of antitrust laws, as it restricts competition and limits consumer choice.

Background of the Dispute

The feud between Musk and OpenAI has been brewing for some time. Musk was one of the co - founders of OpenAI in 2015, with the original goal of promoting the development of AI in a way that benefits humanity. However, he parted ways with the organization in 2018. Since then, OpenAI has gone on to achieve significant success with ChatGPT, which has become one of the most popular generative AI tools globally, controlling around 80% of the U.S. generative AI chatbot market, as per the lawsuit.

Musk, on the other hand, founded xAI in 2023 with the aim of creating a more open and competitive AI ecosystem. The launch of Grok, xAI's answer to ChatGPT, was seen as a direct challenge to OpenAI's dominance. However, xAI has faced difficulties in gaining traction, particularly in the iOS app market, which Musk attributes to Apple's alleged unfair practices.

The situation came to a head in August 2025, when Musk took to social media to voice his concerns. He questioned why neither his social media platform, X (formerly Twitter), nor xAI's Grok were included in the App Store's "Essential" category, despite their popularity. He also accused Apple of violating antitrust laws by creating a system that unfairly benefits OpenAI.

Responses from Apple and OpenAI

As of yet, Apple has not issued a formal response to the lawsuit. However, in the past, the company has maintained that the App Store is a fair and unbiased platform. An Apple spokesperson previously stated that the store showcases apps through a combination of rankings, algorithm - based recommendations, and expert - curated lists, all of which are based on objective criteria.

OpenAI, too, has dismissed the allegations. A spokesperson for the company described the lawsuit as part of Musk's "持续的骚扰模式" (ongoing pattern of harassment). OpenAI has emphasized that its success is due to technological innovation and user satisfaction, rather than any unfair business practices.

Potential Impact of the Lawsuit

The outcome of this lawsuit could have far - reaching implications for the AI industry and the broader tech ecosystem. If xAI is successful, it could lead to significant changes in how Apple operates the App Store, potentially leveling the playing field for AI app developers. It could also set a precedent for future antitrust cases involving AI and tech platform companies.

On the other hand, if Apple and OpenAI are able to defend themselves successfully, it may signal that the current business models and relationships in the AI and app distribution spaces are legally sound. This could further entrench the dominance of established players and make it even more challenging for new entrants to compete.

As the case progresses, it will undoubtedly be closely watched by industry analysts, competitors, and consumers alike, as it has the potential to reshape the competitive landscape of the AI industry.