Elon Musk’s xAI Files Explosive Antitrust Lawsuit Against Apple and OpenAI

Tech's legal battle royale just went nuclear.

Musk's xAI drops antitrust bombshell on Silicon Valley giants

Elon Musk's xAI has launched a blockbuster lawsuit against Apple and OpenAI, alleging anticompetitive practices that could reshape the entire AI landscape. The legal filing claims both companies engaged in systematic market manipulation to stifle competition—just as artificial intelligence becomes the most valuable technological frontier.

Behind the legal jargon: a fight for AI supremacy

The suit alleges Apple and OpenAI colluded to create walled gardens that lock out competitors while hoarding data and compute resources. Musk's team claims this isn't just about market share—it's about controlling the future of intelligence itself.

Financial markets are watching closely

While lawyers rack up billable hours, investors are placing bets on which trillion-dollar company emerges stronger. Because nothing says 'innovation' like two giants using legal teams instead of better products to compete.

This lawsuit doesn't just want damages—it wants to break open the entire AI ecosystem before it becomes permanently locked down. The outcome could determine whether we get multiple competing AIs or a consolidated oligopoly running our digital lives.

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Importantly, an OpenAI spokesperson has called the latest lawsuit “consistent with Mr. Musk’s ongoing pattern of harassment.”

Key Allegations in the Lawsuit

Filed in Texas, the complaint claims that the “exclusive arrangement” between AAPL and OpenAI, which integrates the ChatGPT service into iPhones, is anti-competitive. Also, the lawsuit alleges that this partnership has “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”

The suit claims that the deal gives Microsoft (MSFT)-backed OpenAI an unfair advantage by providing access to “potentially billions of user prompts” from iPhone users, which can be used to improve its models.

Further, the lawsuit states that Apple has suppressed competing AI chatbots, such as xAI’s Grok, in App Store rankings. As evidence, xAI cites delayed app reviews and exclusion from curated lists like “Must-Have Apps”.

Lawsuit Escalates Tensions with Apple and OpenAI

This lawsuit follows a public threat from Musk earlier this month. In a post on X, he accused Apple of “an unequivocal antitrust violation” and claimed that the company’s behavior makes it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”

Further, the legal action deepens the ongoing feud between Musk and OpenAI CEO Sam Altman. Musk, a co-founder of OpenAI in 2015, left the company in 2018 amid disagreements about its future direction. He has since launched xAI to compete with OpenAI and other AI developers.

Musk separately sued OpenAI and Altman in March 2024 for abandoning the company’s mission of developing AI for the “benefit of humanity” by prioritizing profits. That case is still ongoing.