Elon Musk’s artificial intelligence startup, xAI, has filed a lawsuit against Apple and OpenAI in U.S. federal court in Texas, accusing the two companies of colluding to stifle competition in the AI market.
The complaint alleges that Apple and OpenAI “locked up markets to maintain their monopolies and block innovators like X and xAI from competing.” Apple recently integrated ChatGPT into its devices—including iPhones, iPads, and Macs—through an exclusive partnership with OpenAI. xAI claims this arrangement unfairly limits visibility for its X app and its AI assistant, Grok, within Apple’s App Store.
xAI is seeking billions of dollars in damages. Musk amplified the accusations on his social platform X, writing: “A million reviews with a 4.9 average for @Grok, and still Apple refuses to feature it on any lists.”
He has previously warned that Apple’s App Store practices make it “impossible for any AI company besides OpenAI to reach #1.”
OpenAI dismissed the lawsuit as part of “Mr. Musk’s ongoing pattern of harassment,” while Apple has not yet issued a response.
Founded less than two years ago, xAI competes with Microsoft-backed OpenAI and Chinese startup DeepSeek. Musk has integrated the Grok chatbot into Tesla vehicles and purchased social platform X for $33 billion to bolster AI training efforts.
This case adds to Musk’s broader legal battles with OpenAI, which he co-founded in 2015 before leaving the nonprofit. He is separately suing the company and CEO Sam Altman in California over its transition into a for-profit enterprise.
Apple, meanwhile, has long faced criticism over its App Store practices. In a separate case brought by Fortnite maker Epic Games, a judge ordered Apple to loosen restrictions on in-app payments. Musk’s latest lawsuit underscores his escalating fight against what he calls anti-competitive behavior in the AI industry
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