Two companies backed by Elon Musk—X (formerly Twitter) and xAI—have filed a lawsuit against Apple and OpenAI, accusing them of illegally partnering to dominate the generative AI market and suppress competition.
The lawsuit, filed in a U.S. federal court in Texas, claims Apple’s exclusive integration of OpenAI’s ChatGPT into its operating systems violates antitrust laws by giving OpenAI an unfair advantage while blocking emerging competitors.
“There is no valid business reason for the Apple-OpenAI deal to be exclusive,” the filing states.
The Core of the Complaint
Musk’s companies argue that Apple’s 2024 decision to integrate OpenAI’s chatbot into iPhones and other devices:
- It gives OpenAI access to personal activity and prompts data from millions of users.
- Boosts ChatGPT’s visibility and download rates in the App Store.
- Undermines other AI chatbot firms, reducing competition and innovation.
The lawsuit alleges that this arrangement helps Apple and OpenAI maintain dominant positions—Apple in smartphones (65% U.S. market share) and OpenAI in generative AI (80% share in the U.S.).
Rising Tensions Between Musk and Altman
Elon Musk co-founded OpenAI with Sam Altman in 2015, but their partnership has deteriorated into public rivalry. Musk has repeatedly criticised OpenAI for abandoning its original mission of open research in favour of profit-driven motives.
As a response, Musk launched xAI and introduced Grok, a competing AI chatbot. The latest lawsuit is part of a broader pattern of confrontation with former allies and major tech players.
Apple and OpenAI Respond
- Apple has not yet publicly commented on the case.
- OpenAI responded that the lawsuit fits Musk’s “ongoing pattern of harassment.”
The company also emphasised that ChatGPT’s success is driven by user demand, not unfair favouritism.
A Broader Legal Context
Apple’s App Store has previously faced antitrust scrutiny from regulators and developers. The tech giant has maintained that its app review process is fair and neutral. In fact, rivals to ChatGPT—such as Perplexity and DeepSeek—have frequently topped the App Store charts since 2024.
Meanwhile, reports have surfaced that Apple is also exploring a partnership with Google’s Gemini chatbot to enhance Siri, indicating that its AI integrations may not be limited to OpenAI.
What’s at Stake?
This lawsuit adds to growing global concerns about the power concentrated by a few tech giants in the AI space. If successful, it could reshape how AI tools are integrated into consumer devices and how platforms like the App Store are regulated.
The case will be closely watched by tech industry players, regulators, and startups seeking to enter the fast-evolving AI landscape.
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