A legal confrontation emerged on August 25, 2025, when Elon Musk’s artificial intelligence company, xAI, lodged a federal lawsuit in Texas against Apple and OpenAI, accusing them of colluding to stifle competition in the generative AI sector and manipulate App Store dynamics.
xAI asserts that Apple’s exclusive arrangement with OpenAI, which embeds ChatGPT into iOS devices, has effectively shut out rival AI apps like Grok from gaining visibility and traction in the App Store.
The complaint, filed in the Northern District of Texas, claims that Apple and OpenAI worked in tandem to preserve dominance, thereby preventing companies such as xAI from fairly competing. xAI targets “billions of dollars” in damages, citing both anticompetitive practices and restrictions on app promotion.
OpenAI responded swiftly, dismissing the lawsuit as part of Musk’s “ongoing pattern of harassment,” while Apple has remained silent.
This lawsuit amplifies Musk’s sustained legal campaign. Earlier this month, he warned he would initiate legal proceedings against Apple over alleged unfair behaviour in App Store rankings, a complaint underscored by App Store data showing ChatGPT consistently topping free app charts in the U.S., with Grok trailing at number five.
The dispute touches not only on app visibility but also on broader strategic concerns. xAI’s filing suggests that the Apple–OpenAI alliance grants ChatGPT privileged data access and exclusive distribution advantages, which he claims reinforces monopolistic control in AI.
Legal observers note that this case might set a crucial precedent in defining the contours of AI marketplaces and antitrust boundaries.
Experts predict that courts may have to examine whether AI apps qualify as a distinct antitrust market and how platform favouritism may distort competition.
At the heart of the matter, Musk who merged xAI with his social media platform X earlier this year and introduced Grok into Tesla vehicles is directly challenging two formidable rivals: Apple, a smartphone titan, and OpenAI, the ChatGPT maker he once co-founded.