Musk's xAI Sues Apple and OpenAI Over AI Monopoly Claims

Elon Musk's xAI Sues Apple and OpenAI Over AI Monopoly Claims

Written by Aaron S.,

Editor-In-Chief

Last Updated: August 25, 2025

Key Takeaways

Elon Musk’s xAI sued Apple and OpenAI for allegedly locking out rival AI chatbots;
The lawsuit claimed that ChatGPT gained unfair App Store visibility through Apple’s support;
xAI said OpenAI now accesses user data it would not have without Apple’s integration.

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Elon Musk's artificial intelligence (AI) company, xAI, has taken legal action against Apple and OpenAI.

xAI accused the pair of teaming up in a way that puts competing artificial intelligence (AI) technologies at a disadvantage.

The complaint, brought to a federal court in Texas, focuses on Apple’s decision to incorporate OpenAI’s ChatGPT into its smartphone software. The plaintiffs argued that this exclusive integration gives OpenAI an unfair head start and limits the visibility and usability of other AI chatbots.

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According to the lawsuit, the arrangement between the two tech firms allowed OpenAI’s chatbot to gain better positioning in the App Store. As a result, download numbers rose, and alternative generative AI tools saw less exposure and user growth.

The filing also claimed that OpenAI now has access to large volumes of personal queries and interactions from Apple users, which it would not have gathered without the partnership.

Musk’s companies argued that the deal provides no clear business justification for exclusivity. Instead, they stated that it is a decision that makes it harder for rivals to grow and compete in the rapidly expanding AI industry.

Furthermore, the lawsuit suggested that Apple is intentionally reducing the visibility of apps that offer functions or compete directly with ChatGPT, including xAI’s own chatbot, Grok. These practices reinforced Apple and OpenAI’s hold over their respective markets and shut out alternatives.

Meanwhile, xAI was recently sued by the Ethereum-based gaming network Xai. Why? Read the full story.