News
Musk’s xAI Sues Apple, Openai Over Antitrust Claims Tied to AI Integration, App Store Rankings
- By John K. Waters
- 08/26/2025
Elon Musk’s artificial intelligence startup xAI has sued Apple and OpenAI in U.S. a federal court in Texas, alleging that they conspired to stifle competition in the fast-growing AI sector.
The lawsuit claims Apple and OpenAI "locked up markets" by integrating ChatGPT into Apple’s operating systems for iPhones, iPads, and Macs, while suppressing xAI’s Grok chatbot in the App Store. xAI is seeking billions of dollars in damages.
OpenAI called the filing part of Musk’s "ongoing pattern of harassment." Apple did not immediately respond to requests for comment.
Musk, who co-founded OpenAI before departing in 2018, has accused Apple of making it "impossible for any AI company besides OpenAI to reach #1 in the App Store." The suit alleges violations of U.S. antitrust law, including monopolization and conspiracy to monopolize, as well as Texas competition statutes.
Legal experts said the case could provide one of the first opportunities for U.S. courts to define whether a distinct market for AI exists. Apple has previously defended its App Store practices as business decisions made in a competitive environment.
Musk’s xAI, launched less than two years ago, competes with OpenAI, Microsoft-backed AI efforts, and Chinese startup DeepSeek. The lawsuit adds to Musk’s ongoing legal battles with OpenAI and highlights rising tensions as AI firms vie for dominance in consumer and enterprise markets.
About the Author
John K. Waters is the editor in chief of a number of Converge360.com sites, with a focus on high-end development, AI and future tech. He's been writing about cutting-edge technologies and culture of Silicon Valley for more than two decades, and he's written more than a dozen books. He also co-scripted the documentary film Silicon Valley: A 100 Year Renaissance, which aired on PBS. He can be reached at [email protected].