Elon Musk’s xAI has filed a lawsuit against Apple and OpenAI. The lawsuit claims that Apple and OpenAI are working together to stop competition in the technology sector. The lawsuit says that Apple is trying to protect its smartphone monopoly.
Yea we knew this was coming 👇
Elon sues #Apple & #OpenAI$aapl https://t.co/XD0ZV24B0c
— Susan Li (@SusanLiTV) August 25, 2025
It is doing this by adding OpenAI’s ChatGPT into its systems. Musk and OpenAI’s CEO, Sam Altman, have had many disputes. Musk used to be a co-founder and co-chair of OpenAI.
NEWS: Two of @elonmusk's companies, X and xAI, have officially sued Apple and OpenAI.
The lawsuit alleges Apple and OpenAI have “colluded” to maintain monopolies in the smartphone and generative AI markets. https://t.co/cp1ekBPs4Q
— Sawyer Merritt (@SawyerMerritt) August 25, 2025
He is not happy with how the company has changed. Musk recently posted on X (formerly Twitter).
Apple is not only being unfair to xAI’s Grok, but also to Elon Musk’s 𝕏 app.
𝕏 is the #1 News app in 155+ countries, yet Apple does not feature it in the app lists in most of those countries.
This is wrong, and Apple must be held accountable.
— DogeDesigner (@cb_doge) August 26, 2025
He said it’s “impossible for any AI company besides OpenAI to reach #1 in the App Store.” This is because of the partnership between Apple and OpenAI.
The partnership was announced last June. It is expected to start by December. OpenAI and Apple have not responded to requests for comment about the lawsuit.
The tech industry is watching this legal battle closely. It could have a big impact on AI and smartphone technologies. Two companies owned by Elon Musk have sued Apple and OpenAI.
They say that Apple and OpenAI are working together illegally. This is to stop threats from other companies. The lawsuit is about Apple’s decision to put OpenAI’s chatbot into its smartphones.
Musk’s companies say this goes against competition law. Musk had complained about this earlier this month.
Musk’s lawsuit challenges ai monopoly
He said that Apple favored OpenAI in its app store rankings. Musk and OpenAI’s Sam Altman started OpenAI together in 2015. But now they are rivals.
Musk has accused Altman of going against OpenAI’s original ideas. In the lawsuit, Musk’s companies argue that the deal between Apple and OpenAI limits competition. It also gives OpenAI access to information from millions of Apple customers.
The lawsuit says the deal gave the ChatGPT app an advantage in the App Store. This helped it get more downloads than other AI chatbots. OpenAI has about 80% of the AI chatbot market in the US, according to the lawsuit.
Apple has about 65% of the smartphone market. Apple’s app store practices have been part of many legal battles. This includes a big lawsuit against Google.
Several ChatGPT rivals have been popular in the App Store at different times since 2024. OpenAI was also reported to be talking with Google about using Google’s chatbot, Gemini, to help power Apple’s voice assistant, Siri. Many rival chatbot apps have competed to be the most popular in the App Store.
This shows how competitive and fast-changing the AI industry is. This lawsuit could make things even more complicated. It might lead to more attention on the business practices of big tech companies.
As legal battles and market changes continue, the tech world is watching closely. This high-stakes conflict could have a big impact on the future of AI innovation and competition.
