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Billionaire entrepreneur Elon Musk’s AI startup, xAI, has initiated a lawsuit in a Texas federal court against Apple and OpenAI, the creator of ChatGPT. He is claiming an unlawful conspiracy to hinder competition in the AI industry.
The lawsuit claims that Apple and OpenAI have “manipulated markets to preserve their monopolies and hinder innovators like X and xAI from competing.” Apple, collaborating with OpenAI, has incorporated ChatGPT into its products, such as iPhones, iPads, and Macs. xAI claims that Apple has no justification for restricting the visibility of the X app and xAI’s Grok app in its App Store.
The firm is pursuing billions of dollars in claimed damages. Musk made the claim on his social media site X, stating, “A million reviews with an average rating of 4.9 for @Grok and yet Apple continues to exclude Grok from its list.” Musk had earlier warned of a lawsuit against Apple, asserting that its App Store policies “prevent any AI company other than OpenAI from achieving the top spot in the App Store.”
OpenAI characterised the filing as part of “Mr. Musk’s continuous pattern of harassment,” whereas Apple has not yet provided a statement.
xAI, established less than two years ago, rivals OpenAI, Microsoft, and the Chinese startup DeepSeek. In March 2025, the firm purchased X for $33 billion to improve chatbot training abilities and has incorporated its Grok chatbot into Tesla cars.
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OpenAI’s ChatGPT quickly became the fastest-growing consumer application ever after its launch in late 2022. In 2015, Musk co-founded OpenAI alongside Sam Altman as a nonprofit organisation. He departed in 2018, referencing conflicts with the other founders regarding the company’s path. He is concurrently suing OpenAI and Altman in federal court in California over its transition from a nonprofit to a for-profit entity.
Apple’s App Store practices have been examined in other legal cases, including a current lawsuit by Epic Games, the creator of Fortnite, in which a judge mandated that Apple enable more competition for app payment methods. The most recent xAI lawsuit signifies the tech mogul’s increasing resistance to what he views as unfair competition within the AI sector.
