Elon Musk’s xAI is taking Apple and OpenAI to court over accusations of unfair practices that hinder competition in the AI and smartphone markets.
Elon Musk’s AI venture, xAI, has set off a legal firestorm, filing a lawsuit against Apple and OpenAI in a Texas federal court on August 25, 2025. The lawsuit accuses the two tech giants of conspiring to suppress competition in the rapidly growing AI market, particularly by allegedly locking out xAI’s chatbot, Grok, from the coveted spotlight on Apple’s App Store.
xAI argues that Apple and OpenAI’s partnership, which saw OpenAI’s ChatGPT integrated into Apple’s ecosystem (iPhones, iPads, and Macs) in 2024, has effectively created a monopolistic stronghold, leaving little room for competitors like xAI to thrive.
According to the lawsuit, Apple’s preferential treatment of ChatGPT on its App Store has systematically pushed down the rankings of xAI’s Grok, hindering its visibility and growth.
The lawsuit is seeking billions in damages, alleging that the partnership between Apple and OpenAI is not only stifling innovation but also reducing the quality and diversity of generative AI chatbots in the market.
The lawsuit also highlights the deep market reach of Apple and OpenAI. Apple controls about 65% of the U.S. smartphone market, while OpenAI’s dominance in generative AI gives it substantial influence over the development of AI technologies. xAI claims this arrangement locks out new players and discourages innovation in the generative AI field.
While Apple remains silent on the lawsuit, OpenAI has dismissed it as part of Musk’s “ongoing pattern of harassment,” suggesting that the legal battle is yet another chapter in their long-running feud.
Will Musk’s fight against Apple and OpenAI shift the balance in AI innovation, or will the tech titans continue to rule the roost? Only time will tell. But one thing’s for sure: Elon Musk’s legal battles are far from over, and this latest case could be the beginning of a much larger war for control of the future of AI.
