Elon Musk vs big tech: xAI sues Apple, OpenAI; billionaire accuses rivals of monopoly deal

Billionaire Elon Musk’s artificial intelligence startup xAI has filed a lawsuit against Apple and OpenAI in a US federal court in Texas, accusing the two companies of conspiring to stifle competition in the fast-growing AI market, reported Reuters.According to the complaint, Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” Musk’s company alleges that Apple’s exclusive partnership with OpenAI, integrating ChatGPT into iPhones, iPads, and Macs, has effectively shut out rivals from gaining prominence on the Apple App Store.“If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store,” the lawsuit states. Neither Apple nor OpenAI has responded yet.The legal challenge follows Musk’s public threats earlier this month, when he posted on his social media platform X that Apple’s behavior “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”Launched less than two years ago, xAI is positioning itself as a challenger to OpenAI and Microsoft-backed AI initiatives, as well as to Chinese startup DeepSeek.

Musk has tied the company closely with his other ventures: xAI acquired X (formerly Twitter) for $33 billion earlier this year to boost chatbot training and has integrated its Grok AI assistant into Tesla vehicles.This is not Musk’s first legal battle with OpenAI. He is separately suing the company and its CEO Sam Altman in California, seeking to challenge its transition from a nonprofit—founded with his backing in 2015—to a for-profit model.Apple’s App Store policies have long drawn scrutiny. In an ongoing case brought by “Fortnite” maker Epic Games, a judge ordered Apple to open its payment system to greater competition, highlighting growing regulatory and legal pressure on the tech giant.