Musk sues Apple, OpenAI alleging illegal AI market suppression

ChatGPT is now the only choice for iPhone users who want an AI assistant built in
xAI argues that Apple's exclusive deal with OpenAI locks out competing AI products from the smartphone market.

In the ongoing contest over who will shape humanity's relationship with artificial intelligence, Elon Musk's xAI has filed a federal lawsuit in Texas against Apple and OpenAI, alleging that a 2024 exclusive integration deal has made ChatGPT the only AI assistant built into iPhones — effectively closing the door on rivals like Grok before users ever think to look for them. The case touches something older than technology: the question of whether those who control the gates of commerce may also choose who passes through. With Apple commanding 65 percent of the global smartphone market, the stakes of that question are not merely corporate, but civilizational.

  • xAI claims Apple and OpenAI struck a secret arrangement that made ChatGPT the sole AI assistant embedded in iPhones, iPads, and Macs — leaving Grok and every other competitor effectively invisible to hundreds of millions of users.
  • Musk telegraphed the fight publicly on X before the lawsuit landed, accusing Apple of making it impossible for any AI company besides OpenAI to reach the top of the App Store.
  • OpenAI's Sam Altman fired back with a pointed accusation of his own, calling Musk's complaint remarkable given allegations that Musk manipulates X to benefit himself and punish rivals — a reminder that this legal battle is also a deeply personal one between two men who once built a company together.
  • Apple's stock barely flinched at the news, suggesting markets see the lawsuit as noise for now — but the case lands as Epic Games has already cracked Apple's App Store armor, making the legal terrain more treacherous for the company than it once was.
  • The lawsuit escalates a broader reckoning over who controls the digital infrastructure through which billions of people access information, tools, and increasingly, intelligence itself.

Elon Musk's AI company xAI filed a federal lawsuit in Texas against Apple and OpenAI on Monday, alleging the two companies conspired to shut Grok out of the smartphone market through an exclusive integration deal announced in June 2024. Under that arrangement, ChatGPT became the only generative AI assistant built directly into iPhones, iPads, and Macs — a position xAI argues is not the result of merit but of an illegal agreement to suppress competition.

The argument rests on Apple's extraordinary market power. With 65 percent of the global smartphone market, Apple's choices about what software to feature — or bury — carry enormous consequences. xAI contends that without the exclusive deal, Apple would have had no reason to sideline Grok in its App Store. For iPhone users who want an AI assistant integrated into their device, the lawsuit says, there is simply no choice: it's ChatGPT or nothing.

Musk had been signaling the lawsuit for weeks, posting on X that Apple's behavior made it impossible for any AI company besides OpenAI to reach the top of the App Store. OpenAI CEO Sam Altman responded with a sharp counter-accusation, noting the irony of Musk's complaint given allegations that Musk himself manipulates X to benefit his own companies and harm competitors. The exchange reflects a bitter personal history — the two men cofounded OpenAI together in 2015, and Musk is already suing Altman in California to block OpenAI's conversion from nonprofit to for-profit status.

xAI, launched less than two years ago, is racing to compete not only with OpenAI but with rivals like China's DeepSeek. Musk acquired X for $33 billion in March, partly to strengthen Grok's training data, and has integrated the chatbot into Tesla vehicles as well. Neither Apple nor OpenAI commented on the lawsuit, and Apple's stock moved only slightly on the news.

The case arrives at a moment when Apple's grip on its App Store is already under legal strain. Epic Games won a court order requiring Apple to allow greater competition in app payments, and Musk's lawsuit adds fresh pressure on the company's power to decide what software reaches its users — and how prominently it is seen.

Elon Musk's artificial intelligence company xAI filed a federal lawsuit in Texas on Monday against Apple and OpenAI, claiming the two tech giants have conspired to lock him out of the smartphone market and prevent his Grok chatbot from competing fairly. The complaint alleges that Apple and OpenAI entered into an exclusive arrangement that has made ChatGPT the only generative AI assistant built directly into iPhones, iPads, and Mac computers—a deal announced in June 2024 that xAI says amounts to illegal market suppression.

The core of xAI's argument is straightforward: Apple controls 65 percent of the global smartphone market, and by choosing to integrate only ChatGPT into its devices, the company has effectively barred any competing AI product from reaching users who want an AI assistant built into their phones. "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," the lawsuit states. For iPhone users seeking a generative AI chatbot for everyday tasks, there is now no choice—they must use ChatGPT, even if they would prefer Grok or another alternative.

Musk has been signaling this fight for weeks. Earlier in August, he posted on his social media platform X that Apple's behavior "makes it impossible for any AI company besides OpenAI to reach #1 in the App Store." He then threatened legal action, and xAI followed through. The lawsuit frames the exclusive arrangement as a conspiracy to maintain monopolies and prevent innovators from competing—language that echoes antitrust arguments being made against tech giants across the industry.

Sam Altman, the CEO of OpenAI, responded to Musk's earlier threats with a pointed jab of his own. "This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn't like," Altman wrote on X. The comment underscores the personal and professional tensions between the two men, who cofounded OpenAI together in 2015 as a nonprofit organization. Musk is separately suing Altman and OpenAI in California to block the company's conversion from nonprofit to for-profit status.

Musk's xAI, launched less than two years ago, is competing not only with OpenAI but also with Chinese startup DeepSeek. The company acquired X itself in March for $33 billion, partly to enhance Grok's training capabilities, and has also integrated Grok into Tesla vehicles. Musk has a documented history of using litigation as a business tool—he has sued Lego, Nestle, and other brands that pulled advertising from X over concerns about the platform's hostile environment.

Neither Apple nor OpenAI immediately responded to requests for comment. On Wall Street, Apple's stock barely moved, closing up 0.6 percent for the day. Tesla, Musk's electric vehicle company, rose 1.2 percent. OpenAI and xAI are both private and do not trade publicly.

The lawsuit arrives as Apple's App Store practices face mounting legal scrutiny. Epic Games, the maker of Fortnite, has already won a court order requiring Apple to allow greater competition in app payment options. Musk's case adds another layer of pressure on Apple's control over what software reaches its users and how prominently it is featured—a control that has become increasingly difficult to defend as regulators and competitors challenge the company's gatekeeping power.

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
— xAI lawsuit complaint
This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors
— Sam Altman, CEO of OpenAI
La Conversación del Hearth Otra perspectiva de la historia
Inventor

Why does it matter that ChatGPT is the only AI chatbot integrated into iPhones? Can't users just download Grok from the App Store?

Model

They can download it, but integration is different. When an AI is built into the operating system itself, it's the default option—it's there when you ask Siri a question, it's woven into the experience. An app you download is always a step removed. Apple's control over that integration layer is what gives ChatGPT an enormous advantage.

Inventor

So Musk is arguing that Apple is using its market power to favor OpenAI over xAI?

Model

Exactly. And the timing matters. Apple announced the exclusive ChatGPT deal in June 2024, right around when Grok was becoming a real competitor. Musk sees it as Apple choosing sides—locking in OpenAI and locking out everyone else.

Inventor

Is there precedent for this kind of lawsuit?

Model

Yes. Epic Games already won a case forcing Apple to allow more competition in app payments. The App Store's practices have been under fire for years. This lawsuit is part of a broader reckoning with how much power Apple has over what reaches its users.

Inventor

What does Musk stand to gain if he wins?

Model

Potentially the right to have Grok more prominently featured in the App Store, or even integrated into iOS. But more broadly, he'd be weakening Apple's ability to make exclusive deals that shut out competitors.

Inventor

And Altman's response—was that just a personal dig?

Model

It was both. Altman was pointing out that Musk uses X itself to promote his own interests and harm competitors. It's a fair observation, but it also sidesteps the core question: did Apple and OpenAI actually conspire to suppress competition?

Inventor

What happens next?

Model

The lawsuit will move through federal court in Texas. Apple and OpenAI will likely argue they have the right to choose their partners, and that users can still access competing products. But the question of whether exclusive integration deals on a 65 percent market share device constitute illegal monopoly behavior is exactly the kind of thing courts are wrestling with right now.

Quieres la nota completa? Lee el original en Al Jazeera ↗
Contáctanos FAQ