Elon Musk’s artificial intelligence company xAI has filed a lawsuit against Apple and OpenAI, alleging that the two tech giants have conspired to suppress competition in the AI chatbot market.
The lawsuit, filed Monday in a Texas federal court, accuses Apple of giving OpenAI’s ChatGPT preferential treatment in the App Store, while sidelining competitors like Musk’s own chatbot, Grok.
Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing, the lawsuit states.
Musk, who launched xAI in March 2023 following the rapid rise of ChatGPT, has positioned Grok as a direct competitor. He alleges that Grok’s app — despite boasting “a million reviews with a 4.9 average rating” — has been systematically excluded from Apple’s featured lists and promotional space, reducing its visibility to users.
Apple has integrated ChatGPT into its iPhones, iPads, and Macs, while rejecting Musk’s claims of bias in the App Store. “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” an OpenAI spokesperson said.
Musk launched xAI in March 2023, shortly after ChatGPT’s explosive debut, and has sought to leverage his $33 billion acquisition of X to train Grok. The lawsuit argues that Apple’s 65% share of the U.S. smartphone market, combined with OpenAI’s dominance in AI chatbots, creates a de facto monopoly.
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Musk announced on August 12 that he will initiate legal action against Apple through his AI company xAI.
