Elon Musk’s artificial intelligence start-up xAI, alongside his social media company X, has filed a federal lawsuit against Apple and OpenAI, alleging the two formed an illegal partnership that shuts out rivals from the iPhone ecosystem. According to news.com.au, the complaint characterizes the arrangement as a “desperate bid” to stifle competition in generative AI.
The lawsuit’s core claims
Filed in a Texas federal court on Monday (US time), the 61-page complaint asserts Apple and OpenAI entered an exclusive deal that makes OpenAI’s ChatGPT the only generative AI chatbot integrated into Apple’s iPhone operating system. The filing says this blocks competitors such as xAI’s Grok from comparable integration.
The plaintiffs state Apple holds 65 percent of the US smartphone market, while OpenAI controls at least 80 percent of the generative AI chatbot market via ChatGPT. The suit alleges Apple’s partnership with OpenAI gives ChatGPT exclusive access to “billions of user prompts” from hundreds of millions of iPhone users through Apple’s Siri and other iPhone features, a collaboration first announced in June 2024.
The complaint further accuses Apple of manipulating App Store rankings in favor of ChatGPT and delaying approval of updates to xAI’s Grok app. It frames the situation as “a tale of two monopolists joining forces” to preserve dominance as artificial intelligence becomes increasingly central to technology.
Responses and stakes
What xAI and the companies seek
xAI and X are seeking billions in damages and a permanent injunction to halt the alleged anticompetitive practices, and they have requested a jury trial. Apple did not immediately respond to a request for comment, while OpenAI told AFP that “this latest filing is consistent with Mr Musk’s ongoing pattern of harassment,” news.com.au reports.
The lawsuit follows weeks of public sparring between Musk and OpenAI CEO Sam Altman. Earlier this month, Musk posted on X that he would sue Apple for “an unequivocal antitrust violation,” accusing the company of making it “impossible for any AI company besides OpenAI to reach #1 in the App Store.” Altman pushed back, calling Musk’s accusation “remarkable” and alleging Musk manipulates X to benefit his own companies and disadvantage competitors. The exchange escalated with Musk calling Altman a “liar,” and Altman challenging Musk to sign an affidavit about directing changes to X’s algorithm.
Musk co-founded OpenAI before departing in 2018, later launching xAI in 2023 to compete in the generative AI field following ChatGPT’s rise in late 2022. The legal action marks the latest flashpoint in the strained relationship between Musk and OpenAI’s leadership.
