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Elon Musk’s xAI Sues Apple and OpenAI Over Alleged AI Monopoly

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Nairobi, Kenya- Billionaire entrepreneur Elon Musk has escalated his fight in the artificial intelligence world, with his startup xAI filing a blockbuster lawsuit against Apple and ChatGPT-maker OpenAI.

The suit, lodged Monday in a U.S. federal court in Texas, accuses the two tech giants of colluding to shut out competition in the rapidly expanding AI market.

According to court filings, Musk’s company argues that Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”

Apple–OpenAI Deal in the Spotlight

At the heart of the lawsuit is Apple’s partnership with OpenAI, which recently integrated ChatGPT directly into iPhones, iPads, and Macs.

Musk’s lawyers claim this exclusive tie-up effectively blocks rivals such as xAI’s Grok chatbot from gaining visibility in the App Store.

“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,” the lawsuit alleges.

xAI is seeking billions of dollars in damages.

Apple has yet to issue a public response, but OpenAI quickly dismissed the case, calling it “Mr. Musk’s ongoing pattern of harassment.”

Musk Fires Shots on Social Media

Never one to hold back, Musk amplified the lawsuit with posts on his platform X.

“A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists,” he wrote, doubling down on claims of bias in Apple’s App Store practices.

Earlier this month, Musk had already threatened legal action, accusing Apple of creating an uneven playing field that “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”

Legal experts say the lawsuit could become a landmark moment in defining how courts treat AI within antitrust law.

Christine Bartholomew, a law professor at the University at Buffalo, described it as “a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.”

Apple may argue that its OpenAI partnership is simply a business decision in a competitive landscape. Legal analysts also point out that the iPhone maker could cite security and operational reasons for integrating AI into its ecosystem.

Meanwhile, Musk’s legal battles with OpenAI continue on multiple fronts. In a separate California case, he is suing OpenAI and CEO Sam Altman, seeking to block the company’s shift from its nonprofit origins to a profit-driven model.

The dispute comes at a time when Apple’s App Store practices are under mounting scrutiny. The company is still entangled in litigation with Fortnite developer Epic Games, which challenged its restrictive app payment policies.

For Musk, the fight is personal and strategic. His company xAI, launched less than two years ago, has already integrated its Grok chatbot into Tesla vehicles and is positioning itself as a direct challenger to both Microsoft-backed OpenAI and rising rivals like China’s DeepSeek.

Whether Musk’s lawsuit forces Apple and OpenAI to change course—or simply sparks another high-profile tech standoff—remains to be seen.

George Ndole
George Ndole
George is an experienced IT and multimedia professional with a passion for teaching and problem-solving. George leverages his keen eye for innovation to create practical solutions and share valuable knowledge through writing and collaboration in various projects. Dedicated to excellence and creativity, he continuously makes a positive impact in the tech industry.

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