Elon Musk’s artificial intelligence startup, xAI, has filed a lawsuit against Apple and OpenAI in a U.S. federal court in Texas, accusing the companies of conspiring to stifle competition in the AI sector.
In the suit, xAI alleged that Apple and OpenAI had “locked up markets to maintain their monopolies and prevent innovators like xAI from competing.” Apple recently partnered with OpenAI to integrate ChatGPT into its operating systems for iPhones, iPads, and Macs—a move Musk has criticised as anti-competitive. Earlier this month, he warned in a post on X that Apple’s behaviour “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
Musk’s company, which also powers the Grok chatbot integrated into Tesla vehicles, was launched less than two years ago and competes directly with OpenAI and other global AI players such as Microsoft-backed ventures and Chinese startup DeepSeek. xAI acquired social media platform X in March for $33 billion to strengthen its AI training capabilities.
Legal experts say Apple’s dominant position in the smartphone market could give weight to xAI’s antitrust claims, though Apple may argue that its decision to partner with OpenAI was based on business strategy and security concerns. The case could mark the first time U.S. courts assess whether AI constitutes a defined market under antitrust law—a precedent that could shape regulation in the industry.
Musk is also separately suing OpenAI and its CEO, Sam Altman, in California over its shift from a nonprofit to a for-profit business. The latest suit adds to Apple’s long history of legal challenges over its App Store practices, including an ongoing case with Epic Games over in-app payment restrictions.
