Categories: Business

Why Is Elon Musk Suing Apple And OpenAI? The Actual Cause Might Reshape AI Forever

Elon Musk’s xAI is suing Apple and OpenAI for alleged anti-competitive practices, claiming they’re unfairly limiting market access and suppressing rivals like Grok. The claim challenges Apple’s exclusive ChatGPT integration, potentially rephrasing AI competition under U.S. antitrust analysis.

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Published by Ankur Mishra
Published: August 26, 2025 16:08:28 IST

Elon Musk’s artificial intelligence company, xAI, has filed a complaint against Apple and OpenAI, condemning both companies of anti-competitive conduct that apparently limits market access for evolving AI players. The claim was filed on Monday in a U.S. federal court in Texas.

xAI claims Apple and OpenAI are delaying visibility

As per the court documents, xAI claims Apple and OpenAI are working collectively to “lock up markets” and uphold their supremacy in the AI sector. xAI claims that Apple’s selective partnership with OpenAI limits competition by delaying visibility of rival apps, precisely citing the restricted promotion of its Grok chatbot and the X app in the Apple App Store.

Apple recently declared the combination of OpenAI’s ChatGPT across its product network, including iPhones, iPads, and Macs. This corporation is central to xAI’s claim that Apple is favouring one AI provider over others.

Exclusive Deals Under Scrutiny

The complaint submits that without an selective agreement with OpenAI, Apple would have not at all any business reason to deprioritize rival apps in its App Store rankings. Musk claims this restricts fair access to AI innovation for users and developers.

Apple and OpenAI have not yet reciprocated to the claims. Legal experts advise the case could hinge on whether the partnership institutes unfair competitive practices under U.S. antitrust law.

Musk’s Broader Legal Campaign Against OpenAI

This case marks the second most important lawsuit Musk has filed contrary to OpenAI. Earlier this year, he charged the organization and CEO Sam Altman over its change from a nonprofit to a for-profit business. Musk co-founded OpenAI in 2015 with the mission of progressing open AI research.

xAI, launched in 2023, has swiftly expanded its AI capabilities, together with integration of its Grok chatbot into Tesla vehicles. The company faces rigid competition from Microsoft-backed OpenAI and international firms like China’s DeepSeek.

Also Read: Elon Musk Is Beaming Internet From Space To India: Starlink Might Cost Less Than Your iPhone Charger

Published by Ankur Mishra
Published: August 26, 2025 16:08:28 IST

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