Elon Musk’s xAI sued Apple and OpenAI for antitrust charges, alleging they colluded to thwart rival AI technologies. It was filed in the Texas federal court and claims Apple and OpenAI have teamed up to maintain Apple’s AI control over Apple goods.
Musk says this collaboration unfairly prevents competitors like xAI’s chatbot Grok from entering the market, hurting innovation and user choice.
Apple’s ChatGPT deal spurs controversy
Musk argues Apple gave OpenAI an unfair advantage by integrating ChatGPT into iPhones, iPads, and Macs. Apple allegedly gave OpenAI data from hundreds of millions of users to develop ChatGPT through this integration.
According to the lawsuit, Apple then listed ChatGPT above other AI chatbots in the App Store, including xAI’s.
Musk stated, “Apple is preventing any AI company other than OpenAI from reaching the top spot in the App Store,” highlighting what he calls a “clear violation of antitrust laws”.
Market domination and consumer harm
The lawsuit calls the Apple-OpenAI cooperation “two monopolists joining forces” to maintain market domination at the expense of competitors and customers. Musk’s companies say this reduces competition, innovation, options, and user pricing.
Perplexity and DeepSeek have occasionally placed high in the App Store, but xAI says they are rare. The complaint seeks monetary damages and a court order prohibiting anticompetitive behaviour to level the playing field for AI innovators.
Apple has not yet responded to the case, which OpenAI has dismissed as harassment. This legal dispute could influence the future dynamics of AI competition in the smartphone ecosystem, as both companies are significant participants in the field.