In a new legal development, billionaire entrepreneur Elon Musk's artificial intelligence startup, xAI, filed a lawsuit in US federal court in Texas on Monday. The suit targets both Apple and OpenAI, the creator of ChatGPT, accusing them of illegally conspiring to stifle competition in the artificial intelligence market.
The lawsuit alleges that Apple and OpenAI have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." Specifically, the complaint states that the two companies conspired to suppress xAI's products, including its offerings on the Apple App Store. The filing claims that "If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store."
Neither Apple nor OpenAI has provided an immediate response to requests for comment.
This legal action follows earlier threats from Musk. Earlier this month, he used his social media platform X to express his intent to sue Apple, stating that the company's behavior "makes it impossible for any AI company besides OpenAI to reach #1 in the App Store."
The lawsuit is a direct challenge to Apple's recent partnership with OpenAI, which has integrated its ChatGPT AI platform into iPhones, iPads, and Mac computers.
Also Read: Apple-X row escalates; Musk calls OpenAI boss a liar
Musk's xAI, which was launched less than two years ago, is a direct competitor to Microsoft-backed OpenAI, as well as Chinese startup DeepSeek. In March, xAI acquired X for $33 billion, a move aimed at enhancing its capabilities for training its chatbot. Musk has also integrated the Grok chatbot into vehicles manufactured by his electric automobile company, Tesla.
This is not the first time Musk has taken legal action against OpenAI. He is currently involved in a separate lawsuit against OpenAI and its CEO, Sam Altman, in federal court in California. That suit seeks to halt the company's conversion from a nonprofit to a for-profit business, a change that Musk, who co-founded OpenAI with Altman in 2015 as a nonprofit, opposes.
Apple's App Store practices have been the subject of multiple lawsuits in the past. In an ongoing case initiated by "Fortnite" video game maker Epic Games, a judge previously ordered Apple to allow for greater competition regarding app payment options.
Also Read: Musk’s X and former Twitter workers may settle $500 mn lawsuit
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