Elon Musk’s xAI and X File Lawsuit Against Apple and OpenAI in Texas Over AI Competition and Rankings

Apple and OpenAI were sued on 25 August in a U.S. federal court in Texas by Elon Musk’s AI startup xAI and his social network business X. They allegedly accused Apple and OpenAI of illegally collaborating to stifle competition in the field of artificial intelligence.

Allegations of Market Lock-In and App Store Bias

In order to maintain their monopolies and prevent the expansion of new businesses like xAI, the lawsuit claims that Apple and OpenAI “locked up markets”. Apple and OpenAI attempted to prevent xAI’s products, such as the Grok chatbot and X app, from being available on the Apple App Store, according to the complaint.

It claims that if it weren’t for its unique agreement with OpenAI, Apple would have given them more publicity, according to Reuters.

Musk’s Warnings and Apple–OpenAI Partnership

Regarding the case, Apple and OpenAI have not yet responded. Musk had already threatened to sue Apple earlier this month. He wrote on X that it was “impossible for any AI company besides OpenAI to reach #1 in the App Store” due to Apple’s actions.

ChatGPT Integration Into Apple Devices

According to sources, Apple and OpenAI have partnered to integrate ChatGPT into Macs, iPhones, and iPads. According to the lawsuit, OpenAI has an edge thanks to ChatGPT integration, whereas Apple is ranked against “super apps” and AI chatbots like Grok.

As stated in the CNBC story, the court filing claims that competition will continue to be hindered and competitors like xAI will continue to suffer unless judges stop Apple and OpenAI’s efforts

Musk vs Altman: From Co-Founders to Rivals

In March, Musk’s business xAI paid $33 billion to acquire X. He intended to use it to enhance AI chatbot training. Additionally, Musk has linked Tesla vehicles to his Grok chatbot. Less than two years old, xAI faces competition from Chinese firm DeepSeek, Microsoft-backed AI initiatives, and OpenAI.

Musk’s California Lawsuit Against OpenAI

Additionally, Musk is suing OpenAI and its CEO, Sam Altman, in California. His goal is to prevent OpenAI from becoming a for-profit company instead of a nonprofit. According to Reuters, Musk and Altman co-founded OpenAI as a nonprofit in 2015.

Altman’s Response to Musk’s Claims

Apple’s App Store has already been sued. A judge decided that Apple must permit greater competition in app payments in the instance of Epic Games, the producer of the “Fortnite” video game. In his response to Musk on X, OpenAI CEO Sam Altman described Musk’s assertion as “remarkable”.

He said that Musk himself manipulates X to harm competitors and benefit his own businesses. According to the CNBC article, an Apple representative previously stated that the App Store is “fair and free of bias” and now displays thousands of apps using numerous signals.

Even after Apple and OpenAI announced their partnership, some users on X Community Notes noted that competing chatbot apps, such as DeepSeek and Perplexity, were still ranked #1 in the App Store. The ongoing conflict between Altman and Musk, two erstwhile comrades who now disagree over artificial intelligence, has a new chapter thanks to this lawsuit.