Elon Musk’s xAI Sues Apple and OpenAI Over Antitrust, AI Market Domination
Story: Written by Uzuh Rita Grace August 26,2025
Elon Musk’s artificial intelligence company, xAI, has filed a major lawsuit against Apple and OpenAI in a U.S. federal court in Texas, accusing the tech giants of colluding to suppress competition in the booming AI industry.
According to court filings, xAI claims that Apple and OpenAI “locked up markets to preserve their monopolies and block innovators like X and xAI from competing.” The lawsuit argues that Apple’s exclusive partnership with OpenAI—which integrated ChatGPT into iPhones, iPads, and Macs—unfairly disadvantages rival AI platforms, including xAI’s Grok chatbot.
The suit further alleges that Apple deliberately prevents apps like X and Grok from receiving fair visibility in the App Store. xAI is seeking billions of dollars in damages.
OpenAI quickly dismissed the claims. A company spokesperson said the lawsuit is “consistent with Mr. Musk’s ongoing pattern of harassment.” Apple has not issued an official response.
Earlier this month, Musk threatened legal action against Apple, accusing it of making it “impossible for any AI company besides OpenAI to reach the top of the App Store.”
Since its late 2022 launch, ChatGPT has skyrocketed to become the fastest-growing consumer app in history. Musk’s xAI, founded less than two years ago, has been racing to catch up with rivals, including OpenAI and China’s DeepSeek. In March, xAI acquired X for $33 billion to bolster its AI training and has since integrated Grok into Tesla vehicles.
Legal analysts say the case could reshape how U.S. courts view AI under antitrust law. “This lawsuit is a canary in the coal mine,” said Christine Bartholomew, law professor at the University at Buffalo. “It could determine how courts define AI markets and regulate competitive practices.”
