Elon Musk’s xAI Sues Apple and OpenAI Over Alleged AI Monopoly

Elon Musk’s artificial intelligence firm, xAI, has sued tech giants Apple and OpenAI for monopolizing the AI space through a series of exclusive agreements. The lawsuit accuses the companies of having constructed systems that prevent competitors and stifle innovation. Apple has unfairly favored OpenAI’s ChatGPT over rivals such as Grok, which Musk’s company operates. xAI has said it is seeking billions of dollars in damages and limits on what it has called improper business practices.

The 61-page lawsuit contends that Apple and OpenAI have a lock on the market. Musk says that Apple has deliberately put his company’s app on the back burner, while Grok has apparently received glowing user reviews. He implied that Apple had manipulated the App Store rankings at that time to continue to show the OpenAI app as the top one in the artificial intelligence category while reducing visibility for other AI platforms. In a social media post, Musk specifically complained that Grok had been reviewed more than a million times while holding a 4.9 average rating, but Apple refused to include it in the list of top AI apps, according to analysts.

Apple’s recent integration of ChatGPT into iPhones, iPads, and MacBooks is at the heart of the dispute. Announced last year, the partnership had been cast as Apple’s biggest foray into artificial intelligence. One thing is for sure, on Musk’s end at least—this deal represents an unfair lock-in that allows OpenAI to benefit from Apple user data, a resource not even its rival, xAI, can penetrate, as long as the deal is in place. The lawsuit argues that in the absence of the OpenAI deal, Apple would have no grounds for keeping Grok from prominent listings or making it readily visible on the App Store.

The legal fight is just the latest chapter in Musk’s escalating feud with OpenAI. Musk and Sam Altman co-founded the company as a non-profit in 2015 before falling out. Musk has not been shy about criticizing OpenAI’s decision to take a for-profit route, and he is already engaged in litigation involving the organization and Altman specifically over that transformation. With xAI, launched less than two years ago, Musk has positioned himself as a direct competitor, especially after introducing Grok as a challenger to ChatGPT.

OpenAI has rejected Musk’s claims, dismissing the lawsuit as just a broader campaign of harassment. A spokesman said the accusations are baseless and part of Musk’s long-running efforts to discredit the company. Apple, on the other hand, has not responded formally to the court filing. Industry analysts believe that Apple will contend that its partnership with OpenAI is a standard business decision and that it has no legal duty to sell the products of competitors on its platforms.

Legal experts note that this lawsuit could provide U.S. courts with their first chance to formally consider whether artificial intelligence should be defined as a distinct market under antitrust law. The result could have major implications for how AI companies compete in the future. Although Musk’s complaint zeroes in on Apple’s powerful position in the smartphone market and OpenAI’s superiority in generative AI, Apple might also argue that practical and security considerations support incorporating ChatGPT directly into the operating system rather than depending on third-party apps.

For now, the case highlights the growing tension in the competition to dominate artificial intelligence technology. Musk’s challenge underscores concerns that a few companies would have too much power in determining how A.I. tools are distributed to consumers. The legal battle is expected to play out for months, if not years, as courts scrutinize whether Apple and OpenAI acted illegally when they agreed to work with each other.