Elon Musk’s artificial intelligence startup, xAI, has filed a lawsuit against Apple and ChatGPT maker OpenAI in a US federal court in Texas. The lawsuit alleges that the two companies have engaged in an illegal conspiracy to stifle competition in the artificial intelligence market. According to Reuters, the lawsuit claims that Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”
The lawsuit comes after Apple integrated ChatGPT into its operating system for iPhones, iPads, and Macs, as part of its partnership with OpenAI. xAI alleges that this exclusive deal has prevented Apple from featuring its own X app and Grok app more prominently in the App Store. The company is seeking billions of dollars in damages.
OpenAI has responded to the lawsuit, calling it “consistent with Mr. Musk’s ongoing pattern of harassment.” Apple has not commented on the matter. Musk has previously threatened to sue Apple over its App Store practices, which he claims make it impossible for any AI company besides OpenAI to reach the top of the App Store rankings.
The lawsuit is the latest development in a series of ongoing disputes between Musk and OpenAI. Musk had co-founded OpenAI as a nonprofit in 2015, but is now suing the company and its CEO, Sam Altman, to stop its conversion to a for-profit business. xAI, which was launched less than two years ago, competes with OpenAI and other companies in the AI market, including Microsoft-backed OpenAI and Chinese startup DeepSeek.
The case against Apple and OpenAI is significant, as it highlights the growing competition in the AI market and the challenges faced by new entrants. Apple’s App Store practices have been the subject of multiple lawsuits, including a high-profile case brought by Epic Games, the maker of Fortnite. In that case, a judge ordered Apple to allow greater competition for app payment options.
The outcome of the lawsuit is likely to have significant implications for the AI market and the future of competition in the tech industry. As the case progresses, it will be closely watched by industry observers and regulators. With the AI market continuing to grow and evolve, the dispute between xAI, Apple, and OpenAI is a reminder of the importance of fair competition and innovation in the tech sector.
