Elon Musk’s artificial intelligence startup xAI has filed a lawsuit in U.S. federal court in Texas against Apple and OpenAI, the maker of ChatGPT, accusing them of conspiring to suppress competition in the AI sector.
According to the complaint, Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” The lawsuit claims that Apple’s exclusive deal with OpenAI—integrating ChatGPT into iPhones, iPads, and Macs—has effectively sidelined Musk’s X app and Grok chatbot on the App Store. xAI is seeking billions of dollars in damages.
OpenAI responded by calling the lawsuit “consistent with Mr. Musk’s ongoing pattern of harassment,” while Apple has not yet commented. Musk had previously warned that he would sue Apple, alleging its practices make it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”
The case comes as ChatGPT, launched in late 2022, became the fastest-growing consumer app in history. Musk has been expanding his AI footprint, acquiring social media platform X for $33 billion to train his AI models and integrating Grok into Tesla vehicles. xAI, launched less than two years ago, competes directly with Microsoft-backed OpenAI and China’s DeepSeek.
Legal experts noted that Apple’s dominant position in smartphones could strengthen xAI’s claims of anti-competitive practices. However, Apple may counter that its partnership with OpenAI is a business choice, or that security and operational reasons justify ChatGPT’s integration.
The lawsuit could mark the first major test in U.S. courts of how antitrust law applies to artificial intelligence. Christine Bartholomew, a law professor at the University at Buffalo, said the case is a “canary in the coal mine” for how courts will define the AI market.
This is not Musk’s only legal battle with OpenAI. He is also suing the company and CEO Sam Altman in California, arguing its shift from a nonprofit to a for-profit entity violates its original mission. Meanwhile, Apple continues to face scrutiny over its App Store practices, including an ongoing lawsuit from Fortnite maker Epic Games.
