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xAI sues Apple, OpenAI over alleged anti-competitive collusion

August 27, 2025
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xAI sues Apple, OpenAI over alleged anti-competitive collusion

Modupeoluwa Olalere by Modupeoluwa Olalere
August 27, 2025
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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.

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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.

Tags: AI technologyantitrust lawsuitApplemarket dominationOpenAIxAI
Modupeoluwa Olalere

Modupeoluwa Olalere

Modupe is a tech content writer with 3+ years of experience turning complex ideas into clear, engaging stories. She covers innovation, digital trends, and emerging technologies. When she’s not writing, she’s exploring new tools or tracking trends shaping Africa’s tech ecosystem.

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