Musk’s xAI Sues Apple & OpenAI Over App Store “Bias”
Elon Musk’s artificial intelligence company xAI has filed a lawsuit, in a federal Texas court, accusing Apple and OpenAI of anticompetitive behavior.
The suit alleges that Apple’s exclusive integration of ChatGPT into iPhones unfairly sidelines rival AI apps like xAI’s Grok, effectively stifling innovation and choice.
Key Legal Allegations
Monopolistic Market Control
The lawsuit alleges that Apple and OpenAI have “locked up markets to maintain their monopolies” and prevent competitors like xAI from effectively competing.
Specifically, the complaint claims that Apple controls approximately 65% of the U.S. smartphone market while OpenAI dominates roughly 80% of the generative AI chatbot market.
App Store Manipulation
Central to Musk’s allegations is the claim that Apple has been “manipulating App Store rankings” to favor OpenAI’s ChatGPT while systematically suppressing competitor apps.
The lawsuit provides specific evidence pointing to Grok’s impressive performance metrics—over one million reviews with a 4.9-star average rating—yet its conspicuous absence from Apple’s prominent “Must-Have Apps” and “Top Free Apps” sections.
Exclusive Integration Benefits
The complaint argues that the Apple-OpenAI partnership grants ChatGPT “exclusive access to billions of potential prompts” from iPhone users, creating an insurmountable data advantage that competitors cannot match.
This exclusive integration allegedly makes ChatGPT “the only generative AI chatbot with first-party integration” into Apple’s ecosystem.
Super App Suppression
Drawing parallels to the ongoing DOJ antitrust case against Apple, the lawsuit alleges that Apple is intentionally blocking “super apps” and “everything apps” like X that could reduce consumer dependence on expensive iPhones.
The complaint suggests Apple views such applications as an “existential threat” to its smartphone monopoly.
Financial Stakes and Damages Sought
The lawsuit seeks “billions of dollars in damages” from both Apple and OpenAI. According to court filings, xAI and X Corp are pursuing more than $1 billion in damages along with a permanent injunction to halt the alleged anticompetitive practices.
Company Responses
OpenAI dismissed the lawsuit as part of Musk’s “ongoing harassment,” citing past disputes with CEO Sam Altman and Musk’s separate California lawsuit.
Apple remained silent on the case but reiterated earlier that its App Store is fair, highlighting examples like DeepSeek topping rankings in January 2025.
Looking Forward
This lawsuit raises key questions about AI competition, platform access, and exclusive partnerships. With a 2026 jury trial ahead, its outcome could reshape antitrust norms and future AI market dynamics.
News Gist
Elon Musk’s xAI has sued Apple and OpenAI, alleging antitrust violations over App Store favoritism toward ChatGPT.
The lawsuit accuses them of stifling competition, harming rivals like Grok, and unfairly shaping AI app visibility. Apple denies bias; OpenAI dismisses harassment claims.
FAQs
Q1. Why did Musk’s xAI sue Apple and OpenAI?
xAI alleges that Apple’s App Store unfairly promotes ChatGPT, excluding competitors like Grok, which Musk claims suppresses competition.
Q2. What is the lawsuit about?
The case centers on antitrust violations, claiming Apple and OpenAI colluded to monopolize AI chatbot visibility on iOS.
Q3. When was the lawsuit filed?
The lawsuit was filed on August 25, 2025, in the U.S. District Court for the Northern District of Texas.
Q4. How did OpenAI respond?
OpenAI dismissed the case as part of Musk’s “ongoing harassment,” referencing his separate fraud lawsuit against the company.
Q5. What is Apple’s stance?
Apple declined direct comment but previously stated its App Store is fair, citing examples of other AI apps like DeepSeek topping rankings.
Q6. Why is this case significant?
It could set a legal precedent for how courts evaluate exclusive AI partnerships and influence future app marketplace competition.
