Elon Musk’s artificial intelligence startup, xAI, has filed a lawsuit against Apple and OpenAI, accusing them of engaging in anti-competitive practices aimed at stifling competition in the generative AI sector. The complaint was lodged on October 2, 2023, in the US District Court for the Northern District of Texas and alleges that the two companies have colluded to maintain monopolies across both the smartphone and AI markets.
The lawsuit claims that Apple has undermined competing applications, particularly those designed to function as generative AI chatbots. xAI, which acquired the social media platform X in March 2023, asserts that Apple has prioritized OpenAI’s products in its App Store rankings while neglecting alternatives like xAI’s Grok. The legal filing contends that this behavior is part of a broader strategy by Apple to protect its smartphone share and maintain its competitive edge in the market.
According to the complaint, “In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots.” This accusation highlights the intense rivalry between the tech giants as they vie for dominance in the rapidly evolving AI landscape.
An OpenAI spokesperson responded to the lawsuit, stating, “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.” The spokesperson did not elaborate further. Meanwhile, representatives from Apple did not immediately provide a comment on the matter.
Musk’s confrontational stance toward Apple is not new. Earlier in October 2023, he threatened legal action against the company for what he called “an unequivocal antitrust violation,” asserting that Apple’s practices make it nearly impossible for AI companies other than OpenAI to achieve top rankings in the App Store.
In response to Musk’s claims, OpenAI CEO Sam Altman expressed his disbelief, stating, “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.”
Apple has previously defended its App Store policies, asserting that it is designed to be “fair and free of bias.” The company claims to feature thousands of applications based on a variety of performance indicators. Notably, after Apple’s partnership with OpenAI to integrate ChatGPT into its devices—including iPhone, iPad, and Mac—several users pointed out through X’s Community Notes feature that rival chatbot apps such as DeepSeek and Perplexity reached top rankings in the App Store.
The ongoing legal battle marks a continuation of the contentious relationship between Musk and Altman. Musk was a co-founder of OpenAI in 2015 but departed in 2018 due to disagreements regarding the organization’s direction. In 2022, he filed a lawsuit against OpenAI and Altman, alleging a breach of contract for prioritizing commercial interests over the original mission of advancing AI for the benefit of humanity.
In a counterclaim, OpenAI has accused Musk and xAI of engaging in “harassment” through various forms of litigation and public attacks, including a controversial bid to acquire the company for $97.4 billion, which OpenAI claims was intended to damage its business relationships.
The outcome of this lawsuit could have significant implications for the competitive landscape of the AI industry, particularly as companies navigate the complexities of innovation, market share, and regulatory scrutiny.
