Elon Musk’s xAI Takes Apple and OpenAI to Court

Elon Musk has launched fresh legal action against Apple and OpenAI, accusing the two tech giants of creating illegal monopolies that stifle competition in the fast-growing artificial intelligence market.

According to the lawsuit, filed on Monday, Musk’s X Corp. and xAI allege that Apple’s deal to integrate ChatGPT into the iPhone through Apple Intelligence leaves little room for rivals. The filing claims that iPhone users “have no reason” to download alternative AI apps because Apple “force[s]” them to use ChatGPT as the default chatbot.

Musk argues that the partnership unfairly sidelines competitors, including xAI’s Grok chatbot and the X app, by allegedly deprioritizing them in the App Store rankings. “Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing,” the lawsuit states.

Earlier this month, Musk publicly threatened Apple with legal action, accusing the company of manipulating App Store rankings in favor of OpenAI. “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,” Musk said.

The lawsuit highlights that while X and Grok have achieved strong rankings, neither appeared in the App Store’s “Must-Have Apps” section — where ChatGPT was the “only” AI chatbot listed as of August 24, 2025. Musk’s companies argue this creates a “moat” protecting OpenAI, since ChatGPT integration provides access to billions of potential user prompts from hundreds of millions of iPhones.

In response, OpenAI spokesperson Kayla Wood dismissed the claims, calling them “consistent with Mr Musk’s ongoing pattern of harassment.” Apple, meanwhile, has reiterated that its store is “designed to be fair and free of bias.”