ELON MUSK’s XAI files lawsuit against Apple and OpenAI over AI competition and app store rankings

Wednesday, August 27, 2025 - Billionaire entrepreneur Elon Musk’s artificial intelligence startup, xAI, has filed a lawsuit against Apple and ChatGPT creator OpenAI in U.S. federal court in Texas, alleging an illegal conspiracy to block competition in the AI sector.

According to the lawsuit, Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” Apple, in partnership with OpenAI, has integrated ChatGPT into its devices, including iPhones, iPads, and Macs. xAI claims that without this exclusive deal, Apple would have no reason to limit the visibility of the X app and xAI’s Grok app in its App Store.

The company is seeking billions of dollars in alleged damages. Musk reinforced the claims on his social media platform X, stating, “A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists.” Musk had previously threatened to sue Apple, claiming that its App Store practices “make it impossible for any AI company besides OpenAI to reach #1 in the App Store.”

OpenAI described the filing as part of “Mr. Musk’s ongoing pattern of harassment,” while Apple has yet to comment.

xAI, launched less than two years ago, competes with Microsoft-backed OpenAI and Chinese startup DeepSeek. The company acquired X in March for $33 billion to enhance chatbot training capabilities and has integrated its Grok chatbot into Tesla vehicles.

OpenAI’s ChatGPT became the fastest-growing consumer application in history shortly after its launch in late 2022. Musk co-founded OpenAI with Sam Altman in 2015 as a nonprofit, and he is separately suing OpenAI and Altman in federal court in California over its conversion from a nonprofit to a for-profit business.

Apple’s App Store practices have faced scrutiny in other lawsuits, including an ongoing case by Fortnite maker Epic Games, in which a judge ordered Apple to allow greater competition for app payment options. The latest xAI lawsuit represents the tech billionaire’s growing pushback against what he sees as anti-competitive behaviour in the AI market.