Musk Sues Apple and OpenAI Over AI Monopoly

Musk Sues Apple and OpenAI Over AI Monopoly

Ondřej Barták
Ondřej Barták
Entrepreneur and Programmer
27. 8. 2025
2 minutes reading · 3 views
Musk Sues Apple and OpenAI Over AI Monopoly

Musk Sues Apple and OpenAI Over AI Monopoly

Elon Musk, founder of xAI, has just filed a lawsuit against Apple and OpenAI. The lawsuit, filed in federal court in Fort Worth, Texas, on August 25, 2025, accuses Apple of anticompetitive conduct over its exclusive partnership with OpenAI involving the ChatGPT tool. According to xAI, this agreement creates an illegal "moat" that prevents competitors such as xAI's Grok chatbot from reaching millions of iPhone users.

Details of the Lawsuit

The lawsuit claims that integrating ChatGPT into Apple's iOS operating system "steers" users toward OpenAI's tool, discouraging them from downloading competing apps such as Grok and X. xAI accuses Apple of manipulating App Store rankings and excluding its apps from "must-have" sections while prominently promoting ChatGPT. According to the lawsuit, this practice gives OpenAI unfair access to hundreds of millions of iPhone users and creates an illegal monopoly in artificial intelligence (AI).

xAI, together with Musk's social network X, argues that the agreement between Apple and OpenAI allows OpenAI's tools—specifically ChatGPT and Apple Intelligence—to serve as the exclusive or default AI assistant on iPhones and other Apple devices. According to the lawsuit, this prevents rivals such as Grok from gaining market share or visibility in the App Store. The lawsuit seeks a permanent injunction against these practices and billions of dollars in damages—specifically more than USD 1 billion (CZK 22.5 billion).

Responses from the Parties

OpenAI described the lawsuit as part of Elon Musk's "ongoing pattern of harassment." Apple, meanwhile, claims that its App Store is designed to be "fair and free of bias." The dispute follows Musk's earlier outburst on the X platform against Apple and OpenAI CEO Sam Altman, which took place earlier this month. Musk's anger was not an empty threat, and this is not the first time Apple has faced accusations of operating a "walled garden," a term for a closed ecosystem that restricts competition.

OpenAI CEO Sam Altman

The lawsuit emphasizes that the partnership between Apple and OpenAI limits consumer choice and stifles innovation by preventing alternative AI products from being easily accessed or promoted on Apple devices. xAI claims that this exclusive operating-system-level integration gives OpenAI an unfair advantage and closes the market to other AI providers.

Significance for the AI Market

This case could establish the first precedent for competition in the AI market just as artificial intelligence enters the mainstream. The lawsuit is part of Musk's dispute with OpenAI, which he previously sued for breach of contract and fraud related to OpenAI's transition from a nonprofit to a for-profit organization. According to available information, the lawsuit accuses Apple and OpenAI of creating an illegal scheme to dominate the artificial intelligence industry and suppress competition from other companies such as xAI.

Advertisement

Content created with help from UpTier.

SEO and GEO on autopilot. UpTier’s multi-agent systems write and optimize content for search engines and AI answers.

Discover UpTier ↗

Category:AI
Did you enjoy this article?
Discover more interesting posts on our blog
Back to blog

Related posts

OpenAI gives Codex reusable cloud workspaces accessible from any deviceOpenAI gives Codex reusable cloud workspaces accessible from any device
Codex gains reusable cloud development environments, alongside voice controls in its CLI, code reviews in the ChatGPT desktop app and cloud-based security tools.
2 min read
2. 10. 2026
Amazon releases Strands Decider 2B for AI workflow decisionsAmazon releases Strands Decider 2B for AI workflow decisions
Strands Decider 2B selects from predefined options and returns a confidence score. The fully open-source model is available now and small enough to run locally.
2 min read
1. 10. 2026
OpenAI says it disrupted a campaign to extract hidden model reasoningOpenAI says it disrupted a campaign to extract hidden model reasoning
OpenAI reported a coordinated effort to extract protected model reasoning and said it closed an extraction pathway. It attributed the main cluster of activity to individuals associated with Moonshot AI, the developer of Kimi.
3 min read
1. 10. 2026
Přihlaste se k odběru našeho newsletteru
Zůstaňte informováni o nejnovějších příspěvcích, exkluzivních nabídkách, a aktualizacích.
CodedTrip

Operated by CodedTrip LLC, USA.

YouTube
TikTok