Elon Musk’s AI startup xAI filed a lawsuit on Monday against Apple and OpenAI, accusing both companies of colluding to stifle competition in artificial intelligence. The case, filed in the U.S. District Court for the Northern District of Texas, claims that Apple and OpenAI engaged in an “anticompetitive scheme” to maintain dominance in their respective markets.
Musk’s xAI, which acquired his social media company X earlier this year in an all-stock deal, alleges that Apple deprioritized super apps and AI chatbot rivals — particularly xAI’s Grok — in its App Store rankings. Meanwhile, the complaint says Apple gave preferential treatment to OpenAI by integrating ChatGPT directly into its products.
Allegations of Collusion
“In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI,” the lawsuit states.
Musk has repeatedly accused Apple of antitrust violations. Earlier this month, he threatened to sue the company, arguing that its practices made it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”
OpenAI, in response, dismissed the lawsuit. “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” a spokesperson said. Apple has not yet commented.
A Growing Rivalry
The lawsuit adds another layer to Musk’s contentious history with OpenAI. Musk co-founded the company with Sam Altman in 2015 but left in 2018 following disagreements about its direction. Since then, Musk has positioned xAI as a competitor to OpenAI and other leading AI labs.
In 2024, Musk sued OpenAI and Altman, accusing them of abandoning their founding mission to develop AI “for the benefit of humanity broadly.” OpenAI countered, alleging that Musk and xAI used litigation, public attacks, and even a “sham bid” to acquire the company for nearly $100 billion as tools to harm its business.
The feud comes at a time when Apple and OpenAI have strengthened ties. Last year, Apple announced the integration of ChatGPT into iPhones, iPads, and Mac computers. That partnership has raised questions about favoritism on the App Store, although Apple has said its ranking system is designed to be “fair and free of bias.”
Musk’s claims have also faced pushback from users on his platform, X. Community Notes attached to his posts pointed out that rival chatbot apps like DeepSeek and Perplexity ranked ahead of OpenAI’s ChatGPT in the App Store following the Apple-OpenAI partnership.
Author’s Opinion
Musk’s lawsuit looks less like a slam-dunk case and more like a strategic move to keep pressure on Apple and OpenAI while boosting xAI’s profile. Even if he doesn’t win in court, Musk benefits from framing himself as the underdog fighting entrenched monopolies. But the reality is that Apple, OpenAI, and xAI are all playing power games to secure their place in a market that is still shaping itself. Consumers, meanwhile, may be left with fewer choices as giants fight over who controls the AI ecosystem.
Featured image credit: Heute
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