Elon Musk’s xAI Accuses Apple and OpenAI of Conspiring to Stifle AI Competition in Federal Court
Technology titan Elon Musk’s artificial intelligence venture, xAI, filed a lawsuit against Apple Inc. and OpenAI in a federal court in Texas on Monday, alleging an illicit conspiracy aimed at stifling competition within the AI sector.
According to the lawsuit, Apple and OpenAI have been manipulating markets to preserve their monopolies, thereby hindering innovative companies like xAI from flourishing. The complaint asserts that these tech giants conspired to undermine xAI’s products, including on the Apple App Store.
The lawsuit states that if not for its exclusive agreement with OpenAI, Apple would have no qualms about showcasing xAI’s applications, X and Grok, more prominently in their App Store.
Neither Apple nor OpenAI responded to requests for comment immediately following the filing of the lawsuit.
Earlier this month, Musk hinted at potential legal action against Apple, citing their behavior as detrimental to any AI company other than OpenAI from reaching the top spot in the App Store. In a post on his social media platform X, Musk contended that Apple’s actions make it impossible for any AI company besides OpenAI to achieve the number one position in the App Store.
Apple’s collaboration with OpenAI has integrated ChatGPT, OpenAI’s AI platform, into iPhones, iPads, and Macs. Musk’s xAI acquired X for $33 billion in March to enhance its chatbot training capabilities. Additionally, Musk has incorporated the Grok chatbot into vehicles produced by his electric automobile company, Tesla Inc.
xAI was established less than two years ago and competes with OpenAI, which is backed by Microsoft, as well as Chinese startup DeepSeek.
Musk is also embroiled in a separate lawsuit against OpenAI and its CEO, Sam Altman, in a federal court in California, seeking to halt their transition from a non-profit to a for-profit business entity. Musk co-founded OpenAI with Altman in 2015 as a non-profit organization.
Apple’s App Store practices have been under scrutiny in multiple lawsuits, including an ongoing case by Epic Games, the creator of the popular video game Fortnite. In this case, a judge recently mandated Apple to allow greater competition for app payment options.