Elon Musk’s artificial intelligence company, xAI, has filed a federal lawsuit in Texas accusing Apple and OpenAI of unlawfully conspiring to suppress competition in the AI market. The complaint alleges that Apple’s 2024 decision to integrate OpenAI’s ChatGPT into its operating systems constitutes an exclusive arrangement that violates U.S. competition law.
According to the filing, the partnership unfairly boosts ChatGPT in the App Store, deprives competing chatbots of scale, and gives OpenAI access to extensive user data from Apple devices. xAI contends this arrangement has “foreclosed competition among generative AI chatbots,” reduced innovation, and helped OpenAI maintain an estimated 80% market share in the chatbot sector while Apple retains roughly 65% of the U.S. smartphone market. The suit seeks billions of dollars in damages, claiming there is “no valid business justification” for making the deal exclusive.
In a post on X, Musk criticized Apple’s refusal to promote xAI’s chatbot Grok, noting its strong user reviews. OpenAI dismissed the lawsuit as “consistent with Mr. Musk’s ongoing pattern of harassment.” Apple has previously defended its App Store policies as fair and unbiased, pointing to the success of ChatGPT rivals such as DeepSeek and Perplexity. Reports also suggest Apple has held talks with Google about integrating its Gemini chatbot into Siri.
The case underscores escalating tensions between Musk and OpenAI CEO Sam Altman, co-founders turned rivals. Legal experts note that Apple’s dominant smartphone market position could strengthen xAI’s claims of illegal tying practices. The lawsuit is expected to become a major test of antitrust scrutiny in the rapidly evolving AI industry.
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