Elon Musk’s companies X and xAI are accusing Apple and OpenAI of operating an “anticompetitive scheme” in a lawsuit filed Monday.
“This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence (“AI”),” the lawsuit alleged. “Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”
The lawsuit comes just two weeks after Musk threatened to sue Apple in a post on X. (RELATED: Lawmakers, Tech Firms Called For Regulation Of Artificial Intelligence. Here’s Why It’s Not So Easy)
“Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation,” he wrote. “xAI will take immediate legal action.”
The lawsuit claims that OpenAI, which partnered with Apple in June 2024 to integrate ChatGPT into Apple devices, “quickly rose” to dominate the generative AI chatbot market after creating ChatGPT in 2022.
“Because of OpenAI’s monopoly, other generative AI chatbots have struggled to gain share,” the lawsuit claims. “xAI’s Grok has yet to gain more than a few percent of the market despite accolades about its superior features.”
Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.
xAI will take immediate legal action.
— Elon Musk (@elonmusk) August 12, 2025
Musk’s lawsuit alleged that ChatGPT’s integration into Apple’s operating system makes it so that iPhone users “have no choice but to use ChatGPT, even if they would prefer to use more innovative and imaginative products like xAI’s Grok.”
“As a result of Apple and OpenAI’s exclusive arrangement, ChatGPT is the only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones,” the lawsuit stated.
The filing also claims Apple has “taken further steps to protect its monopoly in smartphones” by deprioritizing AI chatbot apps other than OpenAI.
A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists https://t.co/9GovpyMiZH
— Elon Musk (@elonmusk) August 25, 2025
The lawsuit hopes the court grants a permanent injunction against the companies from repeating the alleged acts and money for damages with the amount to be determined at trial.
Musk co-founded OpenAI in 2015 alongside Sam Altman in an attempt to challenge Google’s monopoly on AI, according to the Observer. Musk stepped down in 2018 in part due to a failed attempt of incorporating OpenAI into his company, Tesla. In 2024, he sued Altman and OpenAI, claiming the organization was prioritizing profit over its mission to help humanity, the outlet reported.
The Daily Caller reached out to OpenAI and Apple for comment but has not heard back as of publication.
“This latest filing is consistent with Mr Musk’s ongoing pattern of harassment,” an Open AI spokesperson told Axios.