Elon Musk’s AI startup, xAI, has filed a lawsuit against Apple and OpenAI, alleging that both companies have engaged in illegal practices to stifle competition in the AI sector.
The lawsuit claims that Apple’s integration of OpenAI’s ChatGPT into its devices has resulted in the neglect of competing applications, such as xAI’s Grok chatbot, in App Store rankings.
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According to a Reuters report, the lawsuit states, “If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store.”
xAI initiated the lawsuit weeks after Musk announced xAI’s intention to take legal action against Apple, alleging antitrust violations. The lawsuit, filed in the US District Court for the Northern District of Texas, seeks billions in damages.
Apple has yet to comment on the matter. Meanwhile, a spokesperson for OpenAI responded, stating, “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.”
Earlier in 2025, xAI acquired X for $33bn to boost its chatbot training capabilities. The Grok chatbot has also been integrated into Tesla vehicles, another company under Musk’s leadership.
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By GlobalDataxAI, launched less than two years ago, competes with Microsoft-backed OpenAI and Chinese startup DeepSeek.
Legal experts not involved in the case told Reuters that Apple’s dominant position in the smartphone market could support xAI’s allegations of anti-competitive conduct. However, they also note Apple might argue that its partnership with OpenAI was a strategic business decision in a competitive landscape.
This lawsuit could provide US courts with their first chance to determine whether a distinct market for AI exists, which is crucial for antitrust litigation.
Separately, Musk is also pursuing legal action against OpenAI and its CEO, Sam Altman, in California to halt its transition from a nonprofit to a for-profit entity.
Apple’s App Store policies have been challenged in the past, notably in a case with Epic Games, the creator of Fortnite, where a judge mandated Apple to permit more competition in app payment options.
