Elon Musk Sues Apple and OpenAI for Monopolizing AI Market

Elon Musk's xAI has filed a lawsuit in a Texas federal court accusing Apple and OpenAI of illegally conspiring to capture markets and stifle competition in the artificial intelligence space. The lawsuit comes after Apple announced a partnership with OpenAI to integrate its ChatGPT chatbot into its iPhone, iPad, and Mac operating systems, Reuters reports.

The lawsuit alleges that the companies “have cornered markets to maintain their monopolies and prevent innovators like X (blocked in Russia) and xAI from competing.” xAI is seeking billions of dollars in damages from Apple and OpenAI, arguing that the exclusivity agreement between them prevents apps like Musk’s own chatbot, Grok, from gaining visibility in the App Store.

Musk has publicly backed up the allegations on his social network X, saying that the Grok app, despite its high user ratings, is not being promoted by Apple. He has previously threatened legal action, arguing that the company's behavior makes it impossible for any AI startup other than OpenAI to succeed in the App Store.

This is not Musk’s first lawsuit against OpenAI. He filed a lawsuit in March 2024, accusing the company of abandoning its original principles and becoming a subsidiary of Microsoft. Experts say the new case could give courts their first opportunity to assess the emerging AI market and what it includes. They also believe that Apple’s dominant position in the smartphone market could strengthen xAI’s arguments that it illegally restricts competition.