Elon Musk's xAI Takes Apple and OpenAI to Court Over Unfair Competition Claims

Elon Musk’s AI company, xAI, teamed up with his social media platform X to file a lawsuit in a Texas federal court against tech giants Apple and OpenAI.

The 61-page complaint accuses the two companies of working together to unfairly dominate the AI and smartphone markets, squeezing out competitors like xAI’s AI chatbot, Grok. The lawsuit centers on Apple’s exclusive deal with OpenAI, which brings ChatGPT to iPhones, iPads, and Macs.

xAI claims this partnership gives ChatGPT an unfair edge, alleging Apple tweaks its App Store rankings to keep ChatGPT at the top, even when apps like Grok have strong user reviews and unique features like real-time image analysis. Right now, Grok sits at number three among free productivity apps, trailing ChatGPT and Gmail. 

• Elon Musk’s xAI Sues Apple and OpenAI Over Antitrust and App Store Bias
• xAI Lawsuit Targets Apple–OpenAI Deal, Claims ChatGPT Gets Unfair Advantage
• Musk’s Grok vs ChatGPT: Legal Battle Could Reshape AI and App Store Rules

xAI says this is no accident—Apple’s financial deal with OpenAI, reportedly worth billions, is designed to box out competitors and limit what consumers can choose. The lawsuit demands billions in damages and a court order to stop these practices, with xAI pushing for a jury trial.

Musk, who helped start OpenAI but left in 2018, has been openly clashing with OpenAI’s CEO, Sam Altman. Earlier this month, Musk called Apple’s actions “a clear antitrust violation” on X. Altman fired back, accusing Musk of using X to boost his own companies. The lawsuit also claims Apple’s deal gives OpenAI exclusive access to user data, making it harder for rivals like xAI to improve their AI.

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Neither Apple nor OpenAI has responded in court yet, but Apple told, its App Store rankings are fair and based on clear standards. Legal experts say this case could shape how AI markets are viewed in antitrust law, especially since the U.S. Department of Justice is already looking into Apple’s App Store practices. This high-stakes legal battle is the latest chapter in Musk’s rivalry with Altman and could change how AI apps reach users.