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Musk’s xAI sues Apple and OpenAI over alleged anticompetitive practices

Lawsuit claims the companies colluded to block rivals in smartphones and generative AI.

   
August 26, 2025, 02:39
Business & Energy
Musk’s xAI sues Apple and OpenAI over alleged anticompetitive practices

DALLAS (Realist English). Elon Musk’s artificial intelligence company xAI, together with his social network business X, filed a lawsuit on Monday against Apple and OpenAI, accusing them of collusion to suppress competition in both the smartphone and generative AI markets.

The complaint, lodged in the U.S. District Court for the Northern District of Texas, alleges that Apple has manipulated its App Store rankings to disadvantage so-called “super apps” and rival AI chatbots such as xAI’s Grok, while simultaneously favoring OpenAI by integrating its ChatGPT technology into Apple devices.

“In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots,” the filing states.

Musk founded xAI in 2023 to compete directly with OpenAI and other leading chatbot developers. In March, xAI acquired X through an all-stock transaction.

OpenAI dismissed the allegations.

“This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” a company spokesperson said. Apple has not yet commented on the lawsuit.

Artificial IntelligenceChatGPTElon Musk
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