Elon Musk Accuses Apple and OpenAI of Antitrust Violations and Collusion in AI Market

Tech magnate Elon Musk’s AI startup, xAI, along with its social network affiliate X, filed a lawsuit against Apple and OpenAI on Monday, alleging an “anticompetitive scheme” aimed at stifling rival artificial intelligence companies.

The suit, lodged in the U.S. District Court for the Northern District of Texas, asserts that Apple and OpenAI have colluded to preserve their respective dominance in smartphone and generative AI markets.

Following a stock-based acquisition in March, xAI gained ownership of X. The complaint alleges that Apple deliberately downgrades “super apps” and generative AI chatbot competitors—such as Grok, xAI’s own product—in its App Store rankings, while preferentially promoting OpenAI by integrating its ChatGPT chatbot into Apple devices.

The lawsuit states: “In an attempt to safeguard its smartphone dominance, Apple has formed an alliance with the company best positioned to obstruct competition and innovation in AI—OpenAI, a market leader in generative AI chatbots.”

An OpenAI spokesperson responded to the allegations, stating: “This recent filing mirrors Mr. Musk’s persistent pattern of harassment.”

Apple representatives have yet to respond to requests for comment regarding the lawsuit.

In 2023, Musk launched xAI as part of a competitive strategy against OpenAI and other leading chatbot developers. Prior to this lawsuit, Musk had publicly threatened Apple with litigation, accusing it of antitrust violations due to its alleged biased treatment of AI companies in the App Store.

Responding to these allegations, Sam Altman, CEO of OpenAI, stated: “This is an extraordinary claim, given rumors suggesting Mr. Musk manipulates X for personal and corporate gain at the expense of competitors and those he dislikes.”

Apple partnered with OpenAI last year to incorporate ChatGPT into various Apple products, including iPhones, iPads, Mac laptops, and desktop computers. Several users reported that competing chatbot apps—such as DeepSeek and Perplexity—were subsequently ranked at the top of the App Store following this partnership announcement.

The lawsuit marks a continuation of the ongoing feud between Musk and Altman, who co-founded OpenAI in 2015 but parted ways in 2018 due to disagreements over its strategic direction. Last year, Musk sued OpenAI and Altman, accusing them of breach of contract by prioritizing commercial interests over their original mission to develop AI for the betterment of humanity at large.

In a countersuit, OpenAI accused Musk and xAI of “harassment” through litigation, social media attacks, press campaigns, and a contrived acquisition bid worth $97.4 billion intended to harm the company’s business relationships.