Elon Musk’s AI startup, xAI, has filed a lawsuit in opposition to Apple and OpenAI, alleging that each firms have engaged in unlawful practices to stifle competitors within the AI sector.
The lawsuit claims that Apple’s integration of OpenAI’s ChatGPT into its units has resulted within the neglect of competing functions, comparable to xAI’s Grok chatbot, in App Retailer rankings.
Based on a Reuters report, the lawsuit states, “If not for its unique take care of OpenAI, Apple would don’t have any purpose to chorus from extra prominently that includes the X app and the Grok app in its App Retailer.”
xAI initiated the lawsuit weeks after Musk introduced xAI’s intention to take authorized motion in opposition to Apple, alleging antitrust violations. The lawsuit, filed within the US District Courtroom for the Northern District of Texas, seeks billions in damages.
Apple has but to touch upon the matter. In the meantime, a spokesperson for OpenAI responded, stating, “This newest submitting is according to Mr. Musk’s ongoing sample of harassment.”
Earlier in 2025, xAI acquired X for $33bn to spice up its chatbot coaching capabilities. The Grok chatbot has additionally been built-in into Tesla autos, one other firm below Musk’s management.
xAI, launched lower than two years in the past, competes with Microsoft-backed OpenAI and Chinese language startup DeepSeek.
Authorized consultants not concerned within the case advised Reuters that Apple’s dominant place within the smartphone market may assist xAI’s allegations of anti-competitive conduct. Nevertheless, in addition they word Apple would possibly argue that its partnership with OpenAI was a strategic enterprise resolution in a aggressive panorama.
This lawsuit may present US courts with their first probability to find out whether or not a definite marketplace for AI exists, which is essential for antitrust litigation.
Individually, Musk can be pursuing authorized motion in opposition to OpenAI and its CEO, Sam Altman, in California to halt its transition from a nonprofit to a for-profit entity.
Apple’s App Retailer insurance policies have been challenged up to now, notably in a case with Epic Video games, the creator of Fortnite, the place a choose mandated Apple to allow extra competitors in app fee choices.
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