Texas, Aug 26 (V7N) – Elon Musk's artificial intelligence company, xAI, has filed a federal lawsuit against Apple Inc. and ChatGPT-maker OpenAI, accusing them of conspiring to stifle competition and monopolize the AI market. The suit, lodged in a Texas court on Monday, alleges that the partnership between Apple and OpenAI has unfairly restricted the visibility and distribution of rival AI platforms, including xAI's chatbot Grok.

The lawsuit claims Apple’s integration of OpenAI's ChatGPT into its iPhones, iPads, and Macs has effectively blocked other AI apps, such as Grok, from fair access and promotion in the App Store. xAI is seeking billions of dollars in damages.

"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 filing states.

Musk reiterated the claim on his platform X (formerly Twitter), stating: “A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists.”

OpenAI responded, calling the lawsuit part of Musk’s “ongoing pattern of harassment.” Apple has not issued a formal comment.

Legal experts suggest the case could become a landmark antitrust test for AI technologies, potentially setting precedent on whether exclusive AI partnerships within dominant digital ecosystems violate competition law. Apple’s prior legal battles over App Store practices, including its ongoing case with Epic Games, could influence judicial interpretation.

Musk, who co-founded OpenAI in 2015 as a nonprofit and is now separately suing it for its transition to a for-profit model, acquired social media platform X in March 2025 to support xAI’s data infrastructure. xAI competes with OpenAI, Microsoft-backed AI labs, and Chinese firm DeepSeek.

The case may determine how U.S. courts define the scope and regulation of emerging AI markets in the context of antitrust law.

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