Elon Musk’s artificial intelligence startup xAI has filed a lawsuit in U.S. federal court in Texas against Apple and OpenAI, alleging the companies illegally conspired to stifle competition in AI and suppress xAI’s products in Apple’s App Store. According to Reuters, the complaint asserts that Apple and OpenAI “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”
xAI’s claims target App Store visibility and OpenAI partnership
The lawsuit claims Apple and OpenAI worked together to limit xAI’s reach, including by restricting the prominence of the X app and the Grok app in App Store rankings and features. The filing argues that, absent Apple’s exclusive arrangement with OpenAI, Apple would have greater reason to feature xAI’s offerings more prominently. Reuters reported that Apple and OpenAI did not immediately respond to requests for comment.
The complaint follows earlier public comments from Musk, who this month threatened legal action, stating on X that Apple’s behavior “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.” The case spotlights Apple’s integration of OpenAI’s ChatGPT into iPhones, iPads and Macs, which the suit positions as part of a broader alignment that disadvantages rivals.
Context around Musk, xAI, and competitive landscape
Reuters noted that Musk’s xAI was launched less than two years ago and competes with Microsoft-backed OpenAI and Chinese startup DeepSeek. The report also said Musk integrated the Grok chatbot into Tesla vehicles and that xAI acquired X in March for $33 billion to bolster chatbot training capabilities. Separately, Musk is suing OpenAI and CEO Sam Altman in California over the organization’s shift from a nonprofit to a for-profit model; Musk co-founded OpenAI with Altman in 2015 as a nonprofit.
Apple’s App Store practices face broader legal scrutiny
Apple’s marketplace rules and app promotion practices have been recurring litigation targets. Reuters referenced an ongoing case by Epic Games, in which a judge ordered Apple to allow greater competition for app payment options. While distinct from xAI’s claims, that dispute underscores sustained legal pressure on Apple’s control over its app ecosystem.
The new xAI lawsuit adds to mounting legal and competitive tensions across the AI sector. As reported by Reuters, the Texas filing centers on alleged anticompetitive collaboration between Apple and OpenAI and its claimed impact on xAI’s ability to compete in discovery and ranking within the App Store.
