Elon Musk’s xAI Slaps Apple & OpenAI With Explosive Antitrust Lawsuit

Things just got wild! Elon Musk’s xAI dropped a massive lawsuit against Apple and OpenAI on August 25, 2025, in a Texas federal court, accusing them of shady antitrust moves. 

This Elon Musk xAI lawsuit claims the duo’s team-up is squashing competition in AI and smartphones, hurting players like xAI’s Grok chatbot. Let’s unpack this xAI sues Apple and xAI sues OpenAI saga and see what’s at stake.

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The Roots of Elon Musk’s AI Battle

Elon Musk, the Tesla and SpaceX mastermind, launched xAI in 2023 to challenge AI giants. He’s no stranger to OpenAI, having co-founded it in 2015 before parting ways in 2018 over vision clashes.

Fast-forward to 2025, Musk’s X (acquired for $33 billion) and xAI are fighting what they call an unfair Apple-OpenAI alliance. This Apple OpenAI antitrust case stems from a 2024 deal embedding ChatGPT into Apple’s ecosystem, sparking this xAI antitrust case.

Musk’s Ongoing Feud with OpenAI

Musk’s beef with OpenAI isn’t new. He’s been slamming them since suing in California to stop their shift from nonprofit to profit-driven, claiming they abandoned their “public good” mission. 

OpenAI clapped back, accusing Musk of harassment through lawsuits, X posts, and a failed $97.4 billion buyout attempt. 

CEO Sam Altman called it a “sham” on X. This xAI lawsuit escalates things, alleging OpenAI’s 80-85% grip on the AI chatbot market is a monopoly, boosted by Apple’s clout.

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What’s the xAI Antitrust Case About?

The 61-page lawsuit calls out Apple and OpenAI for “locking up markets” in smartphones and generative AI. 

xAI says their exclusive deal funnels billions of iPhone user queries to OpenAI, juicing up ChatGPT’s training while sidelining rivals like Grok. 

With Apple’s 65% U.S. smartphone market share, this partnership allegedly cements an unfair edge. xAI’s seeking billions in damages and a court order to stop this “anticompetitive scheme.”

App Store Rankings Under Scrutiny

Here’s the tea: xAI claims Apple’s App Store plays favorites. Despite Grok’s 4.9-star rating from a million reviews, it’s buried in rankings, while ChatGPT gets prime “Must-Have” spots. 

Musk vented on X on August 12, 2025, calling it a blatant antitrust violation. The suit argues Apple has no reason to demote X or Grok apps without its OpenAI deal, hurting competition in the xAI sues Apple narrative.

Apple and OpenAI’s Cozy Partnership

Apple entered the AI game with Apple Intelligence in June 2024, integrating OpenAI’s ChatGPT (powered by GPT-4o) into iPhones, iPads, and Macs. 

This powers up Siri, writing tools, and image generation. The upcoming iOS 26 update in September 2025 will add ChatGPT-5 for even slicker features. 

But xAI argues this exclusive tie-up makes ChatGPT the default AI, stifling choice and innovation in the Apple AI monopoly debate.

Why This Deal Hurts Competition

• Data Advantage for OpenAI: The Apple-OpenAI deal gives ChatGPT access to tons of user queries, fueling its training while leaving Grok and others in the dust. This creates a lopsided AI race, per xAI.

• User Lock-In: Apple’s setup pushes users toward ChatGPT for key AI tasks, with browser alternatives being clunkier. This echoes the DOJ’s 2024 suit against Apple for blocking “super apps” like X, reinforcing the OpenAI competition lawsuit claims.

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How Apple and OpenAI Are Responding

OpenAI didn’t hold back, calling the suit part of Musk’s “ongoing harassment pattern.” Altman previously shaded Musk on X, hinting he manipulates X to favor his ventures. 

Apple, staying quieter, defended its App Store as “fair and unbiased,” using algorithms and expert curation for rankings. Neither X nor xAI commented right away, but the Elon Musk AI battle is heating up fast.

What Experts Say About the Apple AI Monopoly

Legal pros see both sides. Apple’s 65% smartphone market share could support xAI’s claim of illegal tying, bundling iPhone sales with ChatGPT to squash rivals. 

But Apple might argue it’s just a savvy business move in a competitive field, with no obligation to boost competitors. 

UPenn’s Herbert Hovenkamp notes Apple could cite security or efficiency for the OpenAI deal. This xAI antitrust case could redefine AI markets in court.

Broader Implications for Tech

• Market Fairness: A win could push regulators to crack down on Big Tech partnerships that limit competition, opening doors for smaller AI players like xAI.

• Innovation Boost: Breaking exclusive deals might spur more AI innovation, giving users diverse options beyond ChatGPT, leveling the playing field in the Apple OpenAI antitrust saga.

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Conclusion

Musk’s xAI lawsuit against Apple and OpenAI is a bold move in the Elon Musk AI battle, aiming to dismantle barriers to fair competition. Win or lose, it’s shining a spotlight on Big Tech’s grip on AI innovation. As courts dig in, this could reshape how AI apps compete.

FAQ

What’s the core of xAI’s lawsuit against Apple and OpenAI?

xAI says Apple and OpenAI’s exclusive deal locks AI and smartphone markets, crushing rivals like Grok.

Why does Apple’s iPhone market share matter in this case?

With 65% of U.S. smartphones, Apple’s ChatGPT integration allegedly forces users into OpenAI’s ecosystem.

How does the Apple-OpenAI deal give OpenAI an edge?

Billions of iPhone queries flow to ChatGPT, supercharging its training data while sidelining competitors.

What’s xAI’s issue with App Store rankings?

Grok, despite top ratings, is buried in rankings, while ChatGPT gets spotlight spots, showing alleged bias.

Could this lawsuit change AI competition rules?

Yes, if xAI wins, it may set new antitrust standards, breaking Big Tech exclusives and boosting AI diversity.

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