Musk’s xAI Sues Apple and OpenAI

Elon Musk’s xAI sued Apple and OpenAI on Monday, accusing the pair of an “anticompetitive scheme” to thwart artificial intelligence rivals.

The lawsuit, filed by Musk’s AI startup xAI and its social network business X, alleges Apple and OpenAI have “colluded” to maintain monopolies in the smartphone and generative AI markets.

Musk’s xAI acquired X in March in an all-stock transaction.

It accuses Apple of deprioritizing so-called super apps and generative AI chatbot competitors, such as xAI’s Grok, in its App Store rankings, while favoring OpenAI by integrating its ChatGPT chatbot into Apple products.

“In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots,” according to the complaint, which was filed in U.S. District Court for the Northern District of Texas.

An OpenAI spokesperson said in a statement, “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.”

The Tesla CEO launched xAI in 2023 in a bid to compete with OpenAI and other leading chatbot makers.

Musk earlier this month threatened to sue Apple for “an unequivocal antitrust violation,” saying in a post on X that the company “is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”

After Musk threatened to sue Apple, OpenAI CEO Sam Altman responded, “This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn’t like.”

An Apple spokesperson previously said that its App Store was designed to be “fair and free of bias,” and that the company features “thousands of apps” using a variety of signals.

Apple last year partnered with OpenAI to integrate ChatGPT into iPhone, iPad, Mac laptop and desktop products.

Several users replied to Musk’s post on X via its Community Notes feature saying that rival chatbot apps such as DeepSeek and Perplexity were ranked No. 1 on the App Store after Apple and OpenAI announced their partnership.

The lawsuit is the latest twist in an ongoing clash between Musk and Altman. Musk co-founded OpenAI alongside Altman in 2015, before leaving the startup in 2018 due to disagreements over OpenAI’s direction.

Musk sued OpenAI and Altman last year, accusing them of breach of contract by putting commercial interests ahead of its original mission to develop AI “for the benefit of humanity broadly.”

In a counterclaim, OpenAI has alleged that Musk and xAI engaged in “harassment” through litigation, attacks on social media and in the press, and through a “sham bid” to buy the ChatGPT-maker for $97.4 billion designed to harm the company’s business relationships.