Elon Musk’s artificial intelligence startup, xAI, has initiated legal action against OpenAI and Apple, alleging anticompetitive behavior. Filed in a Texas court, the lawsuit claims a “conspiracy to monopolize” the smartphone and generative AI chatbot markets.
Earlier this month, Musk threatened legal action against Apple and OpenAI, asserting that Apple’s app store practices were hindering other AI companies from achieving recognition. xAI’s Grok chatbot has not reached the popularity of OpenAI’s ChatGPT.
The lawsuit targets a partnership between Apple and OpenAI established last year, which involved integrating OpenAI’s AI technologies into Apple’s operating systems. Musk argues that this partnership “locked up markets” and is seeking to challenge what he sees as an unlawful agreement that exploits Apple’s position in the smartphone industry to enhance OpenAI’s dominance in generative AI chatbots. The lawsuit seeks damages amounting to billions of dollars.
OpenAI has responded to Musk’s allegations by dismissing them as part of a broader pattern of harassment from Musk. An OpenAI spokesperson referred to the lawsuit as consistent with Musk’s previous criticisms.
Apple has yet to provide a comment regarding the lawsuit. The legal dispute adds to ongoing tensions between Musk and OpenAI CEO Sam Altman. Musk co-founded OpenAI with Altman in 2015, but their partnership has since soured, resulting in multiple legal conflicts, particularly over OpenAI’s transition to a for-profit model.
Notably, Musk left OpenAI in 2018 after attempting to assert control over the organization. Recent exchanges between Musk and Altman have intensified as Musk accused Apple of manipulating app rankings to sideline competing AI firms, prompting Altman to counter Musk’s claims.
Currently, OpenAI is reportedly seeking a valuation of $500 billion, potentially making it the most valuable privately held company, surpassing Musk’s SpaceX.
Source: https://www.theguardian.com/technology/2025/aug/25/musk-xai-lawsuit-open-ai-apple