Elon Musk’s artificial intelligence company, xAI, has filed a federal lawsuit accusing Apple and OpenAI of colluding to shut out competition in the fast-growing AI industry.
The lawsuit, filed in Texas, argues that Apple’s exclusive deal to integrate ChatGPT into iPhones, iPads, and Macs gives OpenAI an unfair advantage while sidelining Musk’s own Grok app and other rivals.
“Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing,” the complaint states. xAI is seeking billions of dollars in damages.
Reactions from Apple and OpenAI
OpenAI dismissed the case, with a spokesperson calling it “consistent with Mr. Musk’s ongoing pattern of harassment.” Apple has yet to respond publicly.
Musk, meanwhile, has repeatedly accused Apple of making it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”
A potential test case for AI competition
Legal experts say the case could become the first major U.S. lawsuit to define how antitrust law applies to AI. Christine Bartholomew, a law professor at the University at Buffalo, described it as “a canary in the coal mine” for how courts may handle competition in artificial intelligence.
While Apple dominates the smartphone market, analysts note it will likely argue that its OpenAI partnership was struck in a competitive environment and that it has no legal duty to promote rival apps.
