Elon Musk’s xAI Sues Apple and OpenAI Alleging Monopolistic Behavior in AI Ecosystem

Elon Musk’s AI startup, xAI, together with X Corp., has filed a federal lawsuit in Texas accusing Apple and OpenAI of colluding to suppress competition in artificial intelligence. The suit claims Apple’s exclusive deal with OpenAI gives ChatGPT unfair advantages in its iPhones via preferential placement, making it harder for rival apps like Grok (from xAI) to compete fairly.

The complaint argues that Apple’s integration of OpenAI’s AI features into the operating system gives ChatGPT access to system-level usage without users needing to download a separate app, alongside better visibility in App Store rankings. xAI is seeking substantial monetary damages and a court order to block what it calls anti-competitive behavior.

Apple has not issued a detailed public response yet, and OpenAI has dismissed the claim as part of an ongoing pattern by Musk to challenge the company’s behavior. Analysts say this lawsuit could have major implications for how AI tools are regulated, how app stores allocate visibility, and how default features on devices may shape future competition.