Texas/Global: Elon Musk’s artificial intelligence company, xAI, has filed a lawsuit in a Texas federal court against Apple and OpenAI, accusing the two companies of colluding to stifle competition in the AI sector. The suit claims that Apple is giving preferential treatment to OpenAI’s ChatGPT on iPhones, limiting the growth of other AI companies and undermining market competition.
Elon Musk is suing Apple, $AAPL & OpenAI, calling it “a tale of two monopolists.” 🚨
Apple quiet. OpenAI says Musk is just harassing. pic.twitter.com/4hXneNrL0h
— Tradepal (@tradepal_app) August 25, 2025
The controversy intensified after Apple integrated ChatGPT into its operating system, allegedly preventing users from accessing other AI chatbots. xAI argues that the arrangement gives OpenAI’s ChatGPT priority in the App Store, sidelining innovative products like xAI’s “Grok,” causing billions in losses. The lawsuit seeks compensation for these damages.
Musk, who was among the founders of OpenAI, has previously expressed dissatisfaction with the company’s profit-driven model. The latest legal action underscores ongoing tensions between Musk and OpenAI CEO Sam Altman. Apple and OpenAI have yet to respond officially, but the case is expected to spark a broader debate over monopolistic practices in the AI industry.