Elon Musk’s xAI Files Lawsuit Against OpenAI and Apple

Elon Musk’s xAI has launched a lawsuit against both OpenAI and Apple, alleging that their collaboration to integrate ChatGPT into the iPhone is suppressing competition within the artificial intelligence sector. The legal action was initiated on Monday, with Musk’s company, X Corp., asserting that Apple’s App Store practices are disadvantaging competing chatbot applications and “super” apps such as Grok and X.

The lawsuit claims that users of the iPhone “have no reason” to seek out third-party AI applications, as Apple effectively mandates the use of ChatGPT as the default chatbot when activating Apple Intelligence features. Musk’s companies argue that by doing so, Apple and OpenAI have effectively “locked up markets” to preserve their monopolistic positions and obstruct innovators like xAI from entering the market.

Allegations of Antitrust Violations

Earlier this month, Musk threatened legal action against Apple after accusing the company of manipulating App Store rankings to favor OpenAI. “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,” Musk stated at the time.

The current lawsuit further highlights that while the X and Grok applications have achieved favorable rankings, neither has been featured in the App Store’s “Must-Have Apps” section. According to the lawsuit, ChatGPT was the “only” AI chatbot included in that section on August 24, 2025. This exclusion is cited as evidence of the alleged bias against competing applications.

The filing also criticizes Apple’s partnership with OpenAI for establishing a “moat” that protects the latter due to Apple’s dominant position in the smartphone market. The integration of ChatGPT into the iPhone reportedly provides OpenAI with access to “potentially billions of user prompts originating from hundreds of millions of iPhones,” which xAI claims gives OpenAI an unfair competitive advantage.

In response to the lawsuit, OpenAI issued a statement through spokesperson Kayla Wood, describing the legal action as consistent with “Mr. Musk’s ongoing pattern of harassment.” Meanwhile, Apple previously told Bloomberg that its App Store is “designed to be fair and free of bias,” countering Musk’s allegations.

The unfolding legal battle between these tech giants underscores the increasingly competitive landscape of the AI industry, as well as the regulatory scrutiny surrounding technology monopolies. With Musk’s xAI challenging both Apple and OpenAI, the outcome of this lawsuit could have significant implications for the future of AI applications and competition in the market.