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Musk’s xAI Sues Apple and OpenAI, Alleging iOS Tie-Up and App Store Tactics Stifle AI Competition

The filing targets Apple's ChatGPT integration as an exclusive arrangement steering iPhone access and user prompts to OpenAI.

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Elon Musk attends the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via REUTERS/File Photo
FILE - Elon Musk attends a news conference with President Donald Trump in the Oval Office of the White House, May 30, 2025, in Washington. (AP Photo/Evan Vucci, file)
Elon Musk passed Facebook co-founder Mark Zuckerberg Monday on the world’s wealthiest list as shares of Tesla Inc. continued their unrelenting rally after undergoing a forward stock split. Musk on Monday was worth $111.3 billion compared with $110.5 billion for Zuckerberg, according to the Bloomberg Billionaires Index, which is updated at the end of each market day. (File photos: Susan Walsh and Andrew Hornick/AP)

Overview

  • xAI and X filed a 61-page antitrust complaint in federal court in Fort Worth, Texas, seeking billions in damages and a permanent injunction against Apple and OpenAI.
  • The suit alleges Apple made ChatGPT the only generative AI chatbot integrated into iOS and used App Store rankings and review delays to disadvantage rivals such as xAI’s Grok.
  • The plaintiffs cite Apple’s U.S. smartphone share near 65% and OpenAI’s dominant chatbot usage to argue market foreclosure, and they demand a jury trial.
  • OpenAI called the case part of Elon Musk’s “ongoing pattern of harassment,” and Apple reiterated that its App Store is fair without offering a detailed response.
  • The action escalates a broader legal feud involving separate MuskOpenAI litigation and discovery moves, including a subpoena to Meta over Musk’s reported $97 billion OpenAI bid, while raising novel questions about how courts define AI markets and platform power.