Elon Musk’s xAI Files Lawsuit Against Apple and OpenAI Over Competition

Elon Musk’s xAI has initiated legal proceedings against both Apple and OpenAI, asserting that their collaboration to integrate ChatGPT into the iPhone is hindering competition within the artificial intelligence sector. The lawsuit, lodged on Monday, claims that Apple’s App Store systematically “deprioritizes” competing chatbots and applications, including Musk’s own Grok and X, resulting in a monopolistic environment that stifles innovation.

The legal complaint outlines that users of the iPhone “have no reason” to explore third-party AI applications, as Apple allegedly forces them to use ChatGPT as the default chatbot when utilizing Apple Intelligence features. Musk’s companies argue that this arrangement allows Apple and OpenAI to “lock up markets” and maintain monopolies that inhibit emerging competitors like xAI and X Corp.

Musk previously signalled the possibility of legal action earlier this month, accusing Apple of manipulating App Store rankings in favour of OpenAI. He noted, “Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.”

Claims of Unfair Market Practices

The lawsuit stresses that while both the X and Grok applications have received commendable rankings, they do not feature in the App Store’s “Must-Have Apps” section. The complaint highlights that on August 24, 2025, ChatGPT was allegedly the “only” AI chatbot represented in that category. Musk’s companies argue that this lack of visibility is a significant factor in their inability to compete effectively in the AI marketplace.

Additionally, the legal filing asserts that Apple’s partnership with OpenAI creates a protective barrier around the latter, leveraging Apple’s dominance in the smartphone market. It is claimed that the integration of ChatGPT into the iPhone provides OpenAI with access to “potentially billions of user prompts originating from hundreds of millions of iPhones,” which purportedly gives it a substantial competitive edge.

In response to these allegations, OpenAI spokesperson Kayla Wood characterized the lawsuit as part of Musk’s “ongoing pattern of harassment.” Wood stated in an email to The Verge that the claims are unfounded and lack merit.

Apple has also addressed the accusations, stating through a spokesperson that the App Store is “designed to be fair and free of bias.” Earlier this month, the company reaffirmed its commitment to maintaining an equitable platform for all developers.

As this legal battle unfolds, the implications for the AI industry and the broader competitive landscape remain to be seen. Musk’s aggressive stance against established tech giants reflects ongoing tensions within the rapidly evolving field of artificial intelligence.