Elon Musk's xAI Sues Apple and OpenAI Over Alleged Anticompetitive iPhone AI Integration

Elon Musk sues Apple, OpenAI to block exclusive iPhone/ChatGPT integration

After a public outburst over Grok's App Store rankings, on Monday, Elon Musk followed through on his threat to sue Apple and OpenAI. At first, Musk appeared fixated on ChatGPT consistently topping Apple's "Must Have" app list -- which Grok has never made -- claiming Apple seemed to preference OpenAI, an Apple partner, over all chatbot rivals. But Musk's filing shows that the X and xAI owner isn't just trying to push for more Grok downloads on iPhones -- he's concerned that Apple and OpenAI have teamed up to completely dash his "everything app" dreams, which was the reason he bought Twitter. At this point appearing to be genuinely panicked about OpenAI's insurmountable lead in the chatbot market, Musk has specifically alleged that an agreement integrating ChatGPT into the iOS violated antitrust and unfair competition laws. Allegedly, the conspiracy is designed to protect Apple's smartphone monopoly and block out AI rivals to lock in OpenAI's dominance in the chatbot market. As Musk sees it, Apple is supposedly so worried that X will use Grok to create a "super app" that replaces the need for a sophisticated smartphone that the iPhone maker decided to partner with OpenAI to limit X and xAI innovation. The complaint quotes Apple executive Eddy Cue as expressing "worries that AI might destroy Apple's smartphone business," due to patterns observed in foreign markets where super apps exist, like WeChat in China. "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," Musk's lawsuit alleged. The problematic deal doesn't just set ChatGPT as the only chatbot linked to Siri and other naive iPhone features, the lawsuit alleged. It also gives OpenAI -- which X noted already controls at least 80 percent of the chatbot market -- exclusive access to billions of prompts that OpenAI can use as valuable training data to cement its lead. Without similar access, even rivals from Big Tech companies like Musk's can't scale, the lawsuit said. That supposedly limits their ability to innovate both in terms of advancing their models generally and developing competing chatbots for Apple devices in bids to entice iPhone users to stop relying on native ChatGPT features. If the exclusive deal is maintained, X alleged that Apple's customers will have "less choice and receive generative AI chatbots with fewer features and capabilities," while Apple will allegedly continue to sell iPhones at monopoly prices, and OpenAI plans to "double the price of its 'plus' subscription over the next four years." That plan would be "unfeasible unless OpenAI has power over marketwide prices," X alleged. "In a competitive market for generative AI chatbots, usage of chatbots would be determined by customer choice," X's complaint said. "Generative AI chatbots would vigorously compete with one another to get customers to use their generative AI chatbot over rival ones. Defendants' anticompetitive conduct has prevented this competition by handing a substantial portion of the market to ChatGPT. This conduct prevents ChatGPT's rivals, such as Grok, from fairly competing with ChatGPT." But likely more concerning for Musk, if Apple has its "thumb pressed firmly on the scale for ChatGPT in its App Store," it could mean that "investors face significant risk in backing anyone but the dominant market leader." That means less money will likely flow to X as long as the deal integrating ChatGPT into iPhones remains in place. And according to X, starving resources to OpenAI's rivals poses a further risk of making it easier for Big Tech companies to poach talent. "Apple's conduct inhibits the growth of AI and super apps by allowing OpenAI to maintain its monopoly and curtail innovation and investment in generative AI chatbots that would develop into super apps that replace iPhone functionality," X's lawsuit alleged. X is hoping a jury will agree that -- like Apple's search default deal that helped entrench Google's monopoly -- the exclusive OpenAI deal violates antitrust law by entrenching monopolies. Expecting to recover billions in damages due to alleged harms like lost sales and threats to the X enterprise, X has asked for a permanent injunction blocking the deal. X and Apple did not respond to Ars' request for comment. In a statement to Ars, an OpenAI spokesperson noted, "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," possibly referencing OpenAI's allegations in litigation that Musk has perpetrated a "years-long harassment campaign" to take down OpenAI. Musk's lawsuits are motivated to clear the field for xAI to dominate the AI industry instead, OpenAI has alleged. Apple allegedly fears iPhones will become obsolete The lawsuit makes it clear that Musk's companies are struggling to figure out how Grok will ever get ahead of ChatGPT. Appearing to marvel at ChatGPT, the lawsuit noted that OpenAI's chatbot has experienced "exponential growth" ever since it became the fastest-growing app in history to attract a million users, the lawsuit noted. Now, with the iOS integration, only OpenAI will receive information when iPhone users prompt Siri or use Apple's Writing Tools or camera application. Its rivals "also miss out on prompts by users who never download a generative AI chatbot through the App Store because the integration makes it unnecessary for them to do so," X complained. "There is no telling how long this exclusive arrangement will last," X said, warning the court that OpenAI's rivals "suffer harm every moment they are illegally denied access to these prompts." X suggests that Apple has no valid pro-competitive reason to give ChatGPT such exclusivity and seemed stung that Apple allegedly rejected xAI's request to integrate Grok with iOS. Supposedly, Apple has also rejected "numerous requests by xAI for the Grok app to be featured in the App Store," including when the app launched and more recently when X debuted Grok's new "Imagine" feature. In addition to "manipulating App Store rankings," Musk's lawsuit accused Apple of "delaying approval for updates to xAI's Grok app" as another way to reduce competition. If not for all of this anticompetitive behavior, Grok and other rival chatbots would be "more widely used," X alleged, and that would generate more revenue and accelerate chatbot innovation across the board. But Apple likely doesn't want that to happen, because it fears that a superior Grok will fuel X super apps that will make it easier to switch to a cheaper smartphone -- and perhaps one day make iPhones obsolete. Musk fears deal could doom X "everything app" X's lawsuit alleges that shady finances of the OpenAI/Apple deal suggest it was designed to block AI innovation. "OpenAI has provided ChatGPT to Apple for free and is functionally paying for the arrangement itself," X's complaint said, while noting that Apple allegedly doesn't expect to receive a profit from the deal any time soon. X noted a report indicating that Apple "pushing OpenAI's brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments." In short, X claimed that "OpenAI is willing to sacrifice short-term profits in exchange for such access" as a means of maintaining dominance. And Apple similarly has no expectations for short-term gains, only planning to take an "eventual cut" of "OpenAI's monetization of ChatGPT prompts through its iPhones and other devices," X alleged. To X, it seems curious that Apple would exclusively partner with OpenAI despite there being no immediate profits and seemingly no technical reasons why it couldn't offer the same deal to other chatbot makers. "By making the deal exclusive, Apple sacrificed the profits it would have earned had it integrated with multiple generative AI chatbots," X's lawsuit noted, alleging that the true motive was Apple and OpenAI's shared goal of broadly blocking competition to entrench their monopolies. X can't possibly compete against the duo, the lawsuit insisted. Breaking down the numbers, X pointed out that "Siri represented 1.5 billion user requests per day globally" in 2024, which is "more than the total prompts for generative AI chatbots in 2024." Supposedly this means that the deal with Apple gives OpenAI "exclusive access to up to 55 percent of all potential generative AI chatbot prompts." According to X, "the network effects are so strong that despite billions in investments by established tech companies, no competitor has been able to challenge ChatGPT's stranglehold on the market." "ChatGPT was already the largest AI chatbot before the arrangement with Apple," X's lawsuit said. "Since Apple and OpenAI entered into the arrangement, rivals have had little hope to catch up on the scale needed to fairly compete with ChatGPT." For X, losing the lawsuit may even mean its doom, the complaint suggested. "Because Grok's functionality is a key feature of the X app, the X app is more attractive the better Grok performs. And because Defendants' conduct makes Grok less able to fairly compete with ChatGPT, X's app (and thus X) suffers in the process. This results in fewer X app customers and subscriptions, and less revenue and profits, ultimately creating a depressed enterprise value for X."

Elon Musk's xAI sues Apple and OpenAI, alleging anticompetitive collusion | TechCrunch

Elon Musk's X and xAI filed a lawsuit against Apple and OpenAI on Monday, alleging that the two companies are colluding to stifle competition. "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," the lawsuit reads, referring to Apple's partnership with OpenAI to integrate ChatGPT into its systems. This lawsuit is part of a long series of disputes between Musk and Altman, who continue to throw public jabs at one another. Once a co-founder and co-chair of OpenAI, Musk has sued to block OpenAI's transition into a for-profit company. He also submitted an unsolicited bid to take over OpenAI for $97.4 billion, which the company rejected. Musk posted anticompetitive allegations against OpenAI and Apple on X earlier this month, claiming that it's "impossible for any AI company besides OpenAI to reach #1 in the App Store." The partnership between Apple and OpenAI was announced last June, with collaborative features expected to ship in December. OpenAI and Apple did not immediately respond to a request for comment.

Elon Musk's xAI Sues Apple and OpenAI Over App Store Rankings

"This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit alleges. "Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." Grok is currently ranked third in the App Store for free productivity apps -- behind only ChatGPT and Gmail. The 'uncensored' chatbot is also integrated into Musk's social platform X, which is the number one free news app in the App Store. The lawsuit takes particular issue with Apple's integration of ChatGPT into the iOS operating system last year. "This means that if iPhone users want to use a generative AI chatbot for key tasks on their devices, they have no choice but to use ChatGPT, even if they would prefer to use more innovative and imaginative products like xAI's Grok," the lawsuit claims. While Apple has not announced integrations with other chatbots, the OpenAI partnership was not named as an exclusive at launch. Nothing in Apple's operating system prevents iPhone users from accessing chatbots like Grok. "This latest filing is consistent with Mr Musk's ongoing pattern of harassment," said OpenAI spokesperson Kayla Wood in a statement to WIRED. Apple did not immediately respond to a request for comment. The effect of this alleged collusion is that consumers have less choice, xAI claims. "These effects on the market -- less competition, less scale necessary to compete, less investment, and less innovation -- ultimately harm consumers through lower quality, less choice, and higher prices than would exist in the but-for world without Defendants' anticompetitive conduct," the lawsuit reads. Musk was a founding member of the OpenAI team before he left in 2018, eventually founding a rival AI firm in the form of xAI. An email to xAI's press line requesting comment on the lawsuit bounced back. At a dinner in San Francisco earlier this month, a journalist asked OpenAI CEO Sam Altman how he thinks about the relationship between OpenAI and Apple. "Maybe they've decided, look, we're not going to catch up on models -- there's enough competition," a journalist said. "Is there a place you want to be to be their primary partner?" Altman didn't answer the question directly. "Apple's my favorite tech company that is not OpenAI," he said. OpenAI is currently working with famed former Apple designer Jony Ive on an AI hardware product. Altman said at the dinner the product would be a "new computing paradigm," though he declined to share details of the project. This is not the first time Musk has sued OpenAI. In 2024, Musk filed a complaint against the ChatGPT maker, alleging the company had abandoned its founding mission of developing AI to benefit humanity by pursuing a for-profit structure. While the company was originally designed as a nonprofit, it later created a for-profit subsidiary for fundraising purposes. The company is in the process of transitioning that subsidiary to become a public benefit corporation -- a move that is critical to OpenAI receiving billions of dollars from SoftBank.

Elon Musk Sues Apple, OpenAI Over iPhone AI Deal

Elon Musk is suing Apple and OpenAI over a deal the companies struck to bring ChatGPT to iPhone users, according to a lawsuit filed Monday with the US District Court for the Northern District of Texas, in Fort Worth. The lawsuit's main complaint is that Apple doesn't allow iPhone owners to use any other kind of chatbot, like xAI's Grok. Because of this, consumers are locked into using ChatGPT, which gives OpenAI the "benefits from billions of user prompts," which helps the company improve its AI and scale its business. The lawsuit also alleges that Apple manipulated rankings in its App Stores to deprioritize non-OpenAI chatbots, something Apple has previously denied. The lawsuit was filed by xAI, the company behind the Grok chatbot, and its parent company xAI Corp., which Musk founded and includes social media platform X/Twitter.

Elon Musk's xAI is suing OpenAI and Apple

Elon Musk is suing Apple and OpenAI over claims that their deal to build ChatGPT into the iPhone is stifling competition in the AI industry. In a lawsuit filed on Monday, the Musk-owned X Corp. and xAI also accuse Apple's Apple Store of "deprioritizing" rival chatbots and "super" apps, including Grok and X. Musk's companies claim that iPhone users "have no reason" to download third-party AI apps because the company "force[s]" users to use ChatGPT as their default chatbot app when enabling Apple Intelligence. "Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing," the companies allege. Musk threatened Apple with legal action earlier this month after accusing the company of rigging App Store rankings in favor of OpenAI."Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation," Musk said at the time. The lawsuit adds that though the X and Grok apps have received high rankings, neither appears in the App Store's "Must-Have Apps" section, where ChatGPT was allegedly the "only" AI chatbot in the section on August 24th, 2025. X and xAI also accuse Apple's partnership with OpenAI of creating a "moat" that protects the AI giant due to "Apple's monopoly in smartphones." It notes that the iPhone's ChatGPT integration gives OpenAI access to "potentially billions of user prompts originating from hundreds of millions of iPhones," allegedly giving it an unfair advantage. "This latest filing is consistent with Mr Musk's ongoing pattern of harassment," OpenAI spokesperson Kayla Wood said in an emailed statement to The Verge. Apple told Bloomberg earlier this month that its store is "designed to be fair and free of bias" in response to Musk's claims.

Musk's xAI Sues Apple, OpenAI for Depriving Grok of AI 'Prompt Volume'

Don't miss out on our latest stories. Add PCMag as a preferred source on Google. UPDATE 8/25: Elon Musk's xAI officially filed suit against OpenAI and Apple today, arguing that the companies are "monopolists" working "to ensure their continued dominance" amid the rapid growth of AI and denying xAI the ability to grow its business. Apple is leaning on OpenAI via an Apple Intelligence integration "to protect its monopoly in smartphones," xAI argues. The suit points to May comments from Eddy Cue, Apple's SVP of services, who said during Google's search-related antitrust case that, "You may not need an iPhone 10 years from now, as crazy as it sounds," in part due to AI. Apple is prioritizing OpenAI in its App Store and "deprioritizing the apps of competing generative AI chatbots and super apps in its App Store rankings, and it has dragged out its App Store app review processes," the lawsuit says. (The suit defines "super apps" as platforms that don't tie users to a particular device, a longtime goal of Musk's.) Apple execs said last year that the company is open to adding access to other rival AIs, including Gemini, which might happen this year, Google CEO Sundar Pichai says. The lawsuit focuses on the fact that Gemini was not an option when Apple Intelligence launched, adding, "xAI has asked Apple to integrate Grok with iOS, but Grok has not been allowed to do so." For now, Grok and Gemini are available as standalone iOS apps. However, the suit alleges that X's apps receive less promotion in the App Store -- including Apple's curated "Must Have" app lists -- than ChatGPT because of Apple's deal with OpenAI. Apple denies any favoritism. The lawsuit argues that Apple's huge iPhone user base means more people will use ChatGPT over Grok, giving OpenAI an edge when it comes to "prompt volume." "More prompts result in more responses, giving the AI model more training data," the lawsuit says. "Because generative AI chatbots continually improve their algorithms as they receive additional user prompts, additional prompts improve a generative AI chatbot's model." "If not for [Apple and OpenAI's] conduct, [xAI's] apps would be more widely used, generating more revenue for [xAI] and accelerating their innovation," the suit says. Original Story 8/13: Apple is denying that it favors OpenAI in its App Store over other AI rivals. "We feature thousands of apps through charts, algorithmic recommendations, and curated lists selected by experts using objective criteria," an Apple spokesperson tells the BBC, adding that the App Store is designed to be unbiased. The statement comes after Elon Musk tweeted that "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation." He said his AI startup, xAI, "will take immediate legal action." (It's unclear if xAI has taken any legal action yet.) Musk then reposted various claims from other X users that Apple's deal with OpenAI is the reason the company is prioritizing ChatGPT across its App Store. He also claimed Apple is prioritizing OpenAI in its editorially controlled content. "Hey @Apple App Store, why do you refuse to put either 𝕏 or Grok in your 'Must Have' section when 𝕏 is the #1 news app in the world and Grok is #5 among all apps?" he wrote. He followed it up by asking directly, "Why is ChatGPT literally in every list where you have editorial control?" His original tweet has since received the Community Notes treatment, with X users noting that China's DeepSeek topped the App Store in January, while Perplexity did the same in India's app store last month. "Both of these occurred after the OpenAI-Apple partnership [was] announced on June 10, 2024," the community note adds. As of Aug. 13, Apple's top free iPhone apps in the US show ChatGPT in the top spot with Grok in position six. The next AI service is Google Gemini at 45, followed by Microsoft 365 Copilot at 82. The debate has since devolved into an internet fight between Musk and OpenAI CEO Sam Altman, who stepped into the debate by tweeting: "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 points to claims of Musk tweaking X's algorithm in 2023. He cited a report from Platformer that says Musk asked the brand to show his tweets more regularly after President Biden's post about that year's Super Bowl did better than his. Musk responded with: "You got 3M views on your bullshit post, you liar, far more than I've received on many of mine, despite me having 50 times your follower count!" Musk also publicly agreed with X's Head of Product, who responded to Altman, saying, "Perhaps it is you who is manipulating your products to your benefit, by putting warnings on every link to a competitor?" He then showed a screenshot of ChatGPT's warning message for external links. The fight continued for hours, with the official ChatGPT X account eventually reposting a response from xAI's Grok that said, "Musk has a history of directing X algorithm changes to boost his posts and favor his interests, per 2023 reports and ongoing probes. Hypocrisy noted." Musk followed that up by posting a Grok screenshot of his own, which showed the chatbot determining that Musk is more trustworthy than Altman. Real mature stuff that I'm sure Apple is thrilled to be dragged into. Disclosure: Ziff Davis, PCMag's parent company, filed a lawsuit against OpenAI in April 2025, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.

Musk's xAI Sues Ex-Employee for Stealing Grok's Secrets

Don't miss out on our latest stories. Add PCMag as a preferred source on Google. Another day, another lawsuit from Elon Musk's xAI. After filing a suit against OpenAI and Apple earlier this week, arguing that the companies are "monopolists," xAI is now suing one of its own former employees for stealing trade secrets it says could benefit competitors. In a new filing in a California federal court, the AI startup claims that former employee Xuechen Li was "willfully and maliciously copying xAI Confidential Information" and "trade secrets from his xAI-issued laptop to one or more non-xAI physical or online storage systems within his personal control." xAI develops X's in-house chatbot Grok, which competes with tools like OpenAI's ChatGPT. The suit alleges that this misappropriated data "could be used by xAI's competitors, such as OpenAI, and/or foreign entities to preempt xAI's product offerings and market expansions, and understand and use its current and in-development product features to strengthen their own AI model." It claims access to such data would give a "potentially insurmountable competitive advantage" in the AI race. Li, who had received roughly $7 million in stock options at the time of his departure, worked on the company's engineering team and had access to much of Grok's proprietary data. In addition, the startup's lawyers claim that Li took "extensive measures" to conceal his actions, including deleting his browser history and system logs, as well as renaming and compressing files before uploading them to his personal device. Working with high-value intellectual property may be becoming a risky proposition at some tech firms. Just in the past few months, we've seen other lawsuits emerge where former employees have faced legal action for sharing trade secrets. Earlier this month, Apple filed a suit against a former engineer on its Apple Watch team for allegedly downloading confidential data before taking up a new position at consumer tech rival Oppo, and for lying about the circumstances surrounding his departure.

xAI fires rocket at Apple and OpenAI, unfair to Grok

Lawsuit 'consistent with Mr Musk's ongoing pattern of harassment' says Altman's crew Elon Musk's xAI and X businesses have shown a bad case of the Mondays by launching an antitrust lawsuit against Apple and OpenAI that claims the duo are trying to stifle competition in the mobile machine-intelligence world. "OpenAI controls at least 80 percent of the market. Because of OpenAI's monopoly, other generative AI chatbots have struggled to gain share," the lawsuit [PDF] complains. "xAI's Grok has yet to gain more than a few percent of the market despite accolades about its superior features. Just like Apple, OpenAI has incentive to protect its monopoly by thwarting competition and innovation in the generative AI chatbot market. And just like Apple, it has done so in violation of the antitrust laws." In 61 pages of court documents xAI filed on Monday in the Northern District of Texas, xAI claims that Apple's June deal with OpenAI to integrate with Cupertino's kit was a breach of antitrust laws. Specifically Musk's company accuses the pair of violating six counts under the 1890 Sherman Act, and one each of civil conspiracy and unfair conspiracy, and two counts under the Texas Free Enterprise and Antitrust Act. Musk's social media platform X (formerly Twitter), which agreed to acquire xAI earlier this year, was also named as a plaintiff. OpenAI is less than impressed, telling The Register "This latest filing is consistent with Mr Musk's ongoing pattern of harassment." Apple and xAI have yet to resapond to requests for comment. xAI claims that the launch of ChatGPT in 2022 "blindsided" Apple and that the iPhone iterator has been playing catch-up ever since, worried that "super apps" - such as the one xAI claims to be developing - will erode Siri's position as the digital assistant of choice. It claims that Apple signed an exclusive deal with OpenAI, despite the fact that you can upload other AI search tools like Grok, Gemini, and others, to iOS and macOS. It's true that Apple has been slow to take up AI on its platform, lacking a serious alternative to other LLM models. At last week's Google Pixel 10 launch, the Chocolate Factory was somewhat scathing about Apple's decision to delay full AI integration into the next generation of iKit. But the lawsuit claims that "Apple's use of its monopoly power to favor ChatGPT in its App Store rankings and to delay reviews of Grok app updates prevents Grok - one of the biggest threats to ChatGPT - from gaining access to user prompts needed to scale." It accuses Apple of downgrading other AI apps in favor of ChatGPT. While the lawsuit acknowledges iPhones can use other AI engines, it claims that OpenAI competitors don't get enough promotion. The lawsuit cites the list of "Must-Have Apps" posted on Sunday, in which OpenAI was the only AI app listed. Also included were Tinder, Hinge, and Bumble. Musk's lawyers claim that Cook & Co's statement in the T&Cs that Apple's store "is designed to be fair and free of bias," is a lie. Musk first started complaining about the alleged unfair treatment on August 11, when he claimed antitrust violations on the App Store favoring OpenAI. Commenters were quick to point out that DeepSeek had got a number one rating in the software souk. OpenAI's boss fired back with the comment "Will you sign an affidavit that you have never directed changes to the X algorithm in a way that has hurt your competitors or helped your own companies? I will apologize if so." Humiliatingly, Grok - xAI's own engine - agreed with Musk's competitor when it posted a response to Sam Altman's own X post about the matter on August 11. "Sam Altman is right. Musk's Apple antitrust claim is undermined by apps like DeepSeek and Perplexity reaching [top rankings] in 2025. Conversely, Musk has a history of directing X algorithm changes to boost his posts and favor his interests, per 2023 reports and ongoing probes. Hypocrisy noted," it stated. Oddly, the lawsuit doesn't mention AI companies buying access to other platforms. Take, for example, xAI paying Telegram $300 million to become the default AI search tool for the messaging service. ®

Musk Sues Apple, OpenAI, Saying They Hurt AI Competition

Elon Musk accused Apple Inc. and OpenAI in a lawsuit of unfairly favoring the artificial intelligence company across iPhones and thwarting competition for other chatbot makers. Musk's X and xAI seek billions of dollars in damages in the suit filed Monday in federal court in Fort Worth, Texas, arguing that Apple's decision to integrate OpenAI into the iPhone's operating system inhibits rivalry and innovation within the AI industry and harms consumers by depriving them of choice. The billionaire founder of xAI Holdings, which now houses the Grok AI team and X social network, said Apple makes it impossible for anyone other than OpenAI's ChatGPT to reach the top of the App Store charts, a sought-after global spotlight for app developers. Bloomberg News Legal Reporter Madlin Mekelburg joins Bloomberg Businessweek Daily to discuss. (Source: Bloomberg)

xAI sues Apple and OpenAI over deal to integrate ChatGPT into iPhones

Elon Musk's xAI has sued Apple and OpenAI alleging a deal between them breaks antitrust rules by thwarting competition in artificial intelligence and opening a new front in the technology billionaire's feud with the two companies. Apple struck a major deal with OpenAI last year to integrate ChatGPT into its Siri voice assistant, as well as its writing and camera features, as the tech giant made a big push into AI features on its smart devices. "As a result of the Apple-OpenAI deal, ChatGPT is not just the default -- it is the only generative AI chatbot with a first-party integration into Apple's smartphones," xAI said in a lawsuit filed in US federal court on Monday. OpenAI, it says, has been given "exclusive access to billions of potential prompts". The "unlawful agreement" denies rival chatbots the same reach and access to users, the lawsuit alleges. It claims that Apple has failed to innovate in the AI sector, noting the faltering rollout of its Apple Intelligence system. The lawsuit also claims that Apple has manipulated App Store rankings and delayed app updates to disadvantage xAI-developed Grok. Apple has previously stated that it plans to integrate its software with other AI chatbots, but no further partnerships have been announced since it rolled out ChatGPT integration in December. It has held discussions with Google to integrate Gemini. An OpenAI spokesperson said: "This latest filing is consistent with Mr Musk's ongoing pattern of harassment." The lawsuit also accuses OpenAI of holding a monopoly in the AI chatbot market. Apple did not immediately respond to a request for comment. When Musk announced earlier this month he would sue the company, the tech giant said its App Store was "designed to be fair and free of bias". Monday's suit accuses Apple of seeking to protect a smartphone monopoly by inhibiting the development of AI-powered "super apps", which pose a threat to the traditional suite of apps from which Apple generates revenue. xAI's suit consciously echoes allegations in a lawsuit that the US justice department filed against Apple last year alleging that the iPhone maker had quashed the development of such apps because they threatened its high-margin services business. When the Apple-OpenAI deal was announced in June 2024, Musk claimed the tie-up amounted to an "unacceptable security violation" that would give OpenAI access to iPhone user data. He said he would ban the devices at his companies. Musk's attack on Apple marks a continuation of hostilities that have bubbled up between the billionaire and the iPhone maker. In November 2022, at the time he bought Twitter, Musk accused Apple of threatening to remove the app from its App Store. He also slammed Apple's 30 per cent commission on digital purchases via the store. The feud was quickly quashed when Musk met Tim Cook to resolve the "misunderstanding". In November 2023 hostilities broke out again when Apple was one of several advertisers that withdrew its ads from X, but Apple has since resumed advertising on the platform. The suit also marks Musk's latest salvo against OpenAI, a company he helped launch in 2015, before leaving the board in 2018 after a clash with chief executive Sam Altman. Musk is also suing the ChatGPT parent in California, alleging that its pursuit of profits constitutes a breach of contract. The billionaire launched a bid to buy OpenAI's core assets earlier this year, which was rebuffed. Musk tried to draw Meta chief Mark Zuckerberg into that bid, a court filing last week revealed. Earlier this month Musk branded Altman a "liar" for suggesting Musk manipulated X to promote his own posts. Altman's post had "far more [views] than I've received on many of mine, despite me having 50 times your follower count!," Musk pointed out in response. Monday's suit alleges that OpenAI and Apple "have also used X's platform to spread disinformation about their anti-competitive scheme".

Elon Musk's xAI sues Apple and OpenAI over AI competition, App Store rankings

Aug 25 (Reuters) - Billionaire entrepreneur Elon Musk's artificial intelligence startup xAI sued Apple (AAPL.O), opens new tab and ChatGPT maker OpenAI in U.S. federal court in Texas on Monday, accusing them of illegally conspiring to thwart competition for artificial intelligence. Musk earlier this month had threatened to sue Cupertino, California-based Apple, saying in a post on his social media platform X that "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store." Reporting by Mike Scarcella; Our Standards: The Thomson Reuters Trust Principles., opens new tab

Musk's xAI sues engineer for allegedly taking secrets to OpenAI

Aug 29 (Reuters) - Elon Musk's artificial intelligence startup xAI has sued a former engineer at the company for allegedly stealing trade secrets related to its Grok chatbot and taking them to rival OpenAI. Musk's company said in the complaint, opens new tab filed on Thursday in California federal court that Xuechen Li stole confidential information related to "cutting-edge AI technologies with features superior to those offered by ChatGPT" to bring to his new job at OpenAI earlier this month. Li, representatives of OpenAI and attorneys and spokespersons for xAI did not immediately respond to requests for comment on Friday. OpenAI is not a defendant. The complaint underscores the rivalry between Musk's company and OpenAI and a fierce battle among tech companies for AI talent. Musk, an OpenAI co-founder, has separately sued the company and its CEO, Sam Altman, for allegedly deviating from its original mission to benefit humanity. OpenAI countersued Musk in April for harassment. Musk's xAI filed another lawsuit against OpenAI and Apple (AAPL.O), opens new tab in Texas on Monday for allegedly monopolizing the market for AI chatbots on Apple devices. The new lawsuit said Li began working as an engineer for xAI last year, where he helped train and develop Grok. The company said Li took its trade secrets in July, shortly after accepting a job from OpenAI and selling $7 million in xAI stock. Musk's startup said that the secrets could allow OpenAI to bolster ChatGPT with xAI's "more innovative AI and imaginative features." The lawsuit said Li admitted to stealing company files and "covering his tracks" during a meeting on August 14, and that the company later found additional stolen material on his devices that he had not disclosed. Musk's AI company asked the court for an unspecified amount of monetary damages and a restraining order blocking Li's move to OpenAI. Reporting by Blake Brittain in Washington Editing by Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Data Privacy * Intellectual Property Blake Brittain Thomson Reuters Blake Brittain reports on intellectual property law, including patents, trademarks, copyrights and trade secrets, for Reuters Legal. He has previously written for Bloomberg Law and Thomson Reuters Practical Law and practiced as an attorney.

Musk's X hit with antitrust lawsuit by software startup Eliza Labs

Aug 28 (Reuters) - Software developer Eliza Labs has sued Elon Musk's X Corp, accusing it of extracting valuable information from the company before suspending its account on the social media platform and launching copycat AI products. According to the lawsuit, opens new tab filed Wednesday in the federal court in San Francisco, X duped Eliza into sharing its technological expertise related to so-called AI agents that operate on social media platforms. Eliza, founded last year, developed an open-source platform for creating, deploying and managing AI agents, which can take actions on their own and adapt, unlike traditional software. The lawsuit said X violated antitrust law, accusing it of suppressing competition by abusing its social media dominance to eliminate a rival and charge more for its products. Representatives for X and Eliza did not immediately respond to requests for comment. The lawsuit said X reached out to Eliza last year to discuss AI agents operating on X's platform. Eliza and its founder Shaw Walters, who is also a plaintiff, said they shared extensive details about the company's development roadmap and vision for AI agents. X allegedly told Eliza it would have to pay $50,000 a month for an enterprise license to continue operating on the platform. The lawsuit said X was coercing developers into paying "exorbitant" prices to avoid being booted from the site. Eliza said its ouster from the platform in June harmed its relationship with customers and curtailed the company's growth. Previewing a potential defense in the case, Eliza said X should not be accorded immunity under a federal law provision known as Section 230. The measure, frequently invoked by technology companies, can block claims against online platforms over their publishing decisions and hosting of third-party content. Eliza said its ouster from X was not a publishing decision but instead a "calculated and cunning" move to destroy competition. The case is Eliza Labs Inc et al v. X Corporation, U.S. District Court, Northern District of California, No. 3:25-cv-07243-TSH. For plaintiffs: Matthew Miller, Batya Forsyth and Susanna Chenette of Hanson Bridgett For defendant: No appearance yet Elon Musk's xAI sues Apple and OpenAI over AI competition, App Store rankings Advertisers ask US judge to dismiss lawsuit by Musk's X over ad spending Reporting by Mike Scarcella Our Standards: The Thomson Reuters Trust Principles., opens new tab

Elon Musk and xAI are suing Apple and OpenAI because Grok isn't topping the app charts

Elon Musk's artificial intelligence company xAI is suing Apple and OpenAI, . The suit accuses the companies of illegally conspiring to stop rival AI companies from getting a fair shot on the App Store, alleging they have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." The complaint suggests that Apple and OpenAI have been conspiring to suppress xAI's products on the App Store. "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 told Reuters. Apple has integrated OpenAI's ChatGPT into several of its products, but it remains to be seen if that has translated to any anticompetitive practices. It's worth noting that rival AI apps like DeepSeek and Perplexity have both spent time on the top of App Store charts since this partnership began, . This lawsuit comes after Musk a couple of weeks back after making similar accusations regarding Apple and OpenAI. Apple has yet to respond to the complaint but OpenAI CEO "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 is likely referencing various studies that indicate Musk to and posts by conservative commentators. He has also on X, which is a crowdsourced fact-checking tool. OpenAI spokesperson Kayla Wood told The Verge that today's lawsuit "is consistent with Mr. Musk's ongoing pattern of harassment." xAI also brought this lawsuit to the Northern District of Texas Fort Worth Division, which is a . This is where Musk typically steers his various lawsuits, in a "judge shopping."

Musk companies sue Apple, OpenAI alleging anticompetitive scheme

Two of Elon Musk's companies sued Apple and OpenAI on Monday, accusing the pair of an "anticompetitive scheme" to thwart artificial intelligence rivals. The lawsuit, filed by Musk's AI startup xAI and his social media platform X, alleges Apple and OpenAI have "colluded" to maintain monopolies in the smartphone and generative AI markets. It also accuses Apple of deprioritizing so-called "super apps" and generative AI chatbot competitors, such as xAI's Grok, in its App Store rankings. "Unless the court enjoins Apple and OpenAI's unlawful conduct, defendants will continue to thwart competition, and their competitors, like plaintiffs, will continue to suffer the anticompetitive consequences," according to the complaint, which was filed in U.S. District Court for the Northern District of Texas. Musk earlier this month threatened to sue Apple for "an unequivocal antitrust violation," saying in a post on X that the company "is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store." Representatives from OpenAI and Apple didn't immediately respond to requests for comment.

Elon Musk accuses of Apple and OpenAI of stifling AI competition in antitrust lawsuit

Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favoring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, X Corp. -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays Apple as a company that views AI as an "existential threat" to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing Apple of trying to shield the iPhone from do-everything "super apps," such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against Apple last year by the U.S. Department of Justice. The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a nonprofit research lab for the public good. OpenAI has countered with a lawsuit against Musk accusing him of harassment -- an allegation that the company cited in its response to Monday's antitrust lawsuit. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," OpenAI said in a statement. Apple didn't immediately respond to a request for comment. The crux of the lawsuit revolves around Apple's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device couldn't satisfy user needs. The partnership announced last year was part of Apple's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn't been able to deliver on all its promises. Apple's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that's unavailable to Grok and other would-be competitors because it's currently an exclusive partnership. The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the Apple app store's AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT. The lawsuit doesn't mention the potential threat that ChatGPT could also pose to Apple and the iPhone's future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

xAI sues an ex-employee for allegedly stealing trade secrets about Grok

xAI doesn't want its secret recipe for Grok to get out, and it's filing a lawsuit to make sure of that. In a lawsuit filed earlier this week, xAI claimed that former employee Xuechen Li stole the company's confidential info and trade secrets before joining the team at OpenAI. Elon Musk's artificial intelligence company also alleged that Li copied documents from an xAI company laptop to at least one of his personal devices. According to the suit, Li stole "cutting-edge AI technologies with features superior to those offered by ChatGPT and other competing products. This confidential info could result in a potential edge for rival companies in the AI market and "could save OpenAI and other competitors billions in R&D dollars and years of engineering effort," xAI said in the lawsuit. The company behind Grok accused Li of taking "extensive measures to conceal his misconduct," including renaming files, compressing files before uploading them to his personal devices and deleting browser history. The lawsuit added that Li asked xAI to buy back company shares that were given as part of his compensation package, totaling approximately $7 million, before leaving the company to join OpenAI. xAI is asking the courts to file a temporary restraining order that forces its former employee to give up access to any personal devices or online storage services and return any confidential material to the company. On top of that, xAI wants to temporarily block Li from working at OpenAI or any other competitor until the company has recovered all of its trade secrets. xAI's lawsuit comes amidst a major talent war between leading AI companies looking for top researchers. These AI researchers are highly sought after, with competitors offering up to $250 million pay packages in attempts to poach them from their current companies. Beyond the AI talent war, Musk and xAI recently sued OpenAI and Apple, claiming the two companies are working together to maintain a monopoly on the AI market.

Elon Musk's xAI Sues Apple Over Claims It Favors OpenAI

Mr. Musk's artificial intelligence company, xAI, claimed that its Grok chatbot app was being artificially suppressed in Apple's App Store. Elon Musk's artificial intelligence firm, xAI, sued Apple on Monday, accusing the company of manipulating its App Store rankings to give preferential treatment to a top competitor, OpenAI. The lawsuit, filed in U.S. District Court for the Northern District of Texas, said that Apple and OpenAI "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." Apple did not immediately respond to a request for comment. A spokeswoman for OpenAI said the lawsuit was "consistent with Mr. Musk's ongoing pattern of harassment." Mr. Musk has been threatening legal action against Apple for several weeks. In posts on X, his social media site, Mr. Musk said Apple was preventing xAI's chatbot app, Grok, from rising to the top of its download charts. Those complaints followed the release of the latest version of Grok. At first, Mr. Musk posted about how well the chatbot was doing in the App Store rankings. But when it didn't rise to the No. 1 spot, Mr. Musk said on X that Apple had committed "an unequivocal antitrust violation" and added that Apple was "behaving in a manner that makes it impossible for any A.I. company besides OpenAI to reach #1 in the App Store." Mr. Musk co-founded OpenAI, but left in 2018, citing disagreements with the other founders over the company's direction. He sued OpenAI last year, accusing the company and two of its founders, Sam Altman and Greg Brockman, of breaching the effort's founding contract by putting commercial interests ahead of the public good. Apple announced a deal with OpenAI last year to integrate its chatbot, ChatGPT, into its services. In its lawsuit, xAI claimed the deal would allow ChatGPT to pull further ahead in the race to build artificial intelligence. OpenAI would gain access to billions of queries posed by iPhone users, valuable data that helps A.I. models learn and improve, the lawsuit said. (The New York Times has also sued OpenAI for copyright infringement. The company has denied wrongdoing.)

Elon Musk's xAI Sues OpenAI and Apple Over App Store Discrimination Claims

Elon Musk has recently been accusing OpenAI and Apple of engaging in some sort of corporate conspiracy to inhibit smaller AI companies (you know, like his own) from flourishing. Now, his company, xAI, is suing both firms, accusing them of having used "anticompetitive" practices to quash their competitors (again, you know, Musk). The lawsuit, which was filed in Texas on Monday, argues that the two companies have colluded to make ChatGPT the "only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones." The suit makes the case that Apple and OpenAI are "monopolists" that, in an effort to maintain an edge on their competitors, have manipulated the Apple App Store rankings to keep ChatGPT at the top of the charts. The lawsuit was preceded by public complaints from Musk about how Apple was holding back his own chatbot, Grok, from succeeding. Those complaints came after the latest version of Grok was released, with less-than-stellar download results. The New York Times writes: At first, Mr. Musk posted about how well the chatbot was doing in the App Store rankings. But when it didn't rise to the No. 1 spot, Mr. Musk said on X that Apple had committed "an unequivocal antitrust violation" and added that Apple was "behaving in a manner that makes it impossible for any A.I. company besides OpenAI to reach #1 in the App Store." xAI's lawsuit largely repeats these claims: "Apple and OpenAI's exclusive arrangement has made ChatGPT the only generative AI chatbot integrated into the iPhone," the suit says. "This means that if iPhone users want to use a generative AI chatbot for key tasks on their devices, they have no choice but to use ChatGPT, even if they would prefer to use more innovative and imaginative products like xAI's Grok." The litigation seeks a jury trial and the recovery of "billions in damages." Gizmodo reached out to Apple, OpenAI, and xAI for comment. In a statement shared with Gizmodo, an OpenAI spokesperson said: "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment." Ongoing is right. Elon's grudge against Altman might aptly be compared to the eternal flame. He first sued OpenAI last year, accusing the company of betraying its mission to humanity. A few months later, the lawsuit was withdrawn. Musk then sued the company again two months later, accusing it of a breach of contract, and claiming it had "deceived" him. The expanded litigation included OpenAI's business partner, Microsoft. OpenAI subsequently countersued. Shifting tactics, Musk then attempted to buy OpenAI from Altman earlier this year in an unsolicited bid worth $97.5 billion. Altman turned Musk down with a snide tweet. "No thank you but we will buy twitter for $9.74 billion if you want," he wrote on Musk's own platform (Altman's "offer" was notably $34 billion less than Musk paid for it). Elon responded by calling Altman a "Swindler." During much of this time, Musk and Altman have added to tensions by bickering online. A couple of weeks ago, the two execs got into it on X, wherein Musk claimed that OpenAI wasn't playing fair. "They are making it impossible for any other AI company to succeed by relentlessly promoting OpenAI in every way possible!" Musk whined. Altman replied: "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." Can all of this be traced back to the fact that Musk was once a co-founder and board member of OpenAI but now, having parted ways with the firm, must be forced to watch it flourish, while his own AI company is frequently the butt of jokes? There's simply no way to tell. Why these guys do anything is a total mystery, but it certainly seems like there's some hurt feelings at stake (not to mention billions of dollars).

Elon Musk's xAI sues Apple, OpenAI over AI monopoly allegations

China debuts dive robot to plunge nearly 20,000 feet for deep-sea exploration Billionaire entrepreneur Elon Musk's artificial intelligence startup xAI sued Apple and ChatGPT maker OpenAI in a U.S. federal court in Texas on Monday, accusing them of illegally conspiring to block competition in the fast-growing AI sector. The lawsuit argues that Apple and OpenAI have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." It marks Musk's most aggressive legal challenge yet against the companies he claims are stifling rivals in the race for AI dominance.

Elon Musk's xAI sues Apple and OpenAI over Siri partnership, App Store charts - 9to5Mac

Elon Musk has surprisingly made good on one of his promises. Earlier this month, Musk accused Apple of rigging the App Store rankings and threatened to sue the company for this "unequivocal antitrust violation." "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store," Musk posted at the time. In a Texas court on Monday, Musk's xAI officially filed a lawsuit against Apple and OpenAI, accusing the two companies of colluding to prevent competition in the AI industry. From the lawsuit: Apple and OpenAI's exclusive arrangement has made ChatGPT the only generative AI chatbot integrated into the iPhone. This means that if iPhone users want to use a generative AI chatbot for key tasks on their devices, they have no choice but to use ChatGPT, even if they would prefer to use more innovative and imaginative products like xAI's Grok. As a result of Apple and OpenAI's exclusive arrangement, ChatGPT is the only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones. This makes it hard for competitors of ChatGPT's generative AI chatbot and super apps powered by generative AI chatbots to scale and innovate. Worse still, Apple has taken further steps to protect its monopoly in smartphones and to preference OpenAI by deprioritizing the apps of competing generative AI chatbots and super apps in its App Store rankings, and it has dragged out its App Store app review processes for those competitors. Apple responded to Musk's initial posts on X earlier this month with the following statement: The App Store is designed to be fair and free of bias. We feature thousands of apps through charts, algorithmic recommendations, and curated lists selected by experts using objective criteria. Our goal is to offer safe discovery for users and valuable opportunities for developers, collaborating with many to increase app visibility in rapidly evolving categories. Other AI apps have reached the top of the App Store charts since Apple and OpenAI announced their partnership in June 2024. For example, DeepSeek hit #1 on the App Store in January of this year. The company has not yet responded to Musk's xAI actually filing the lawsuit today.

Elon Musk Sues Apple and OpenAI Over Alleged App Store Conspiracy Against X and Grok

Elon Musk's xAI startup today filed a Texas lawsuit against Apple and OpenAI, accusing the two companies of conspiring to "ensure their continued dominance" in the AI market. Earlier this month, Musk threatened to sue Apple and OpenAI because his apps X and Grok have not been featured in the App Store's "Must Have" apps section, and he has now followed through with that threat. The lawsuit suggests that Apple was "blindsided by major innovations in AI," leading it to team up with OpenAI "in a desperate bid to protect its smartphone monopoly." xAI points to the integrated ChatGPT feature for Siri, because Siri's ability to reference a chatbot is exclusive to OpenAI as of now. xAI claims that if iPhone users want to access a generative AI chatbot, "they have no choice but to use ChatGPT, even if they would prefer to use more innovative and imaginative products like xAI's Grok." xAI says that while iPhone users can download any chatbot app on their devices, it would not have the same level of "functionality, usability, and integration" as ChatGPT does with Siri. There is also clear evidence that Apple is working to integrate other chatbots like Gemini into Siri, including a statement from Google CEO Sundar Pichai about talks on that very subject. The lawsuit states that Apple has been "deprioritizing" the apps of competing generative AI chatbots and apps like X in the App Store and delaying App Store updates, plus it complains that xAI has not been able to get data from billions of iPhone users for training Grok because it is not integrated with Siri like ChatGPT. xAI blames Apple and OpenAI for its failure to "attain more than a few percent of the generative AI chatbot market." Despite their high rankings in the subject-matter-based "Top Apps" lists, neither the X app nor the Grok app appeared in the "Must-Have Apps" section of the App Store on August 24, 2025. Instead, as reflected in Figure 5 below, the first 11 listed apps in the "Must-Have Apps" section on August 24, 2025 do not include the X app or the Grok app. Neither the X app nor the Grok app appears further down on the list, either. This is also true of other generative AI chatbot and super app competitors. xAI asks that the court put a stop to Apple and OpenAI's "anticompetitive scheme" and that the two companies be forced to pay damages.

Elon Musk's xAI sues Apple and OpenAI over antitrust claims

The suit alleges that Apple conspired with OpenAI to hurt Grok and other AI products through OS integration and App Store listings. On Monday, Elon Musk's X Corp (the social network formerly known at Twitter) and xAI (which makes the Grok AI products) sued both Apple and OpenAI in federal court. Both X Corp and xAI are owned by parent company X.AI Holdings Corp, after Musk sold X to X.AI back in March of 2025. The case was filed in the Northern District court of Texas, Fort Worth Division, a court known for being so friendly to conservatives that some have accused it of making slanted decisions in defiance of legal precedent-it is a frequent target of "judge shopping" for conservative cases and causes. The 61-page filing (PDF) makes several claims against both Apple and OpenAI, accusing the companies of conspiring together to eliminate competition in the AI industry. It says that AI is "the most powerful technology humanity has ever created" and says that Apple and OpenAI's arrangement makes it impossible for any other AI company to compete. Further, it claims that Apple has "deprioritized" other AI chatbots and "super apps" (like X) in the App Store, and dragged out the app review process for those apps. It demands a trial by jury (yes, it closes by saying "Plaintiffs hereby demand a trial by jury.") and seeks a permanent injunction, monetary damages paid, punitive damages paid, with pre- and post-judgement interest, and cost of legal fees for the suit. At the time of this writing, OpenAI's ChatGPT app holds the top slot on the iOS App Store's free apps rankings. Grok is ranked 22nd, while X is ranked 28th. Apple previously defended the App Store algorithm as "fair and free of bias," after Musk called out the rankings in a post on X. The suit alleges that Apple's arrangement with OpenAI to integrated ChatGPT into iOS 18 prevents X.AI from competing. When ChatGPT integration was announced at WWDC in 2024, Apple said, "we also intend to add support for other AI models in the future." What that has not happened yet, there are persistent rumors that Google's Gemini will be added as an AI integration option in the coming months.

Musk companies sue Apple, OpenAI, accusing them of thwarting competition

Why it matters: The lawsuit is the latest salvo in an escalating war among Silicon Valley titans over the future of AI. * It also represents another chapter in Musk's long-running feud with OpenAI CEO Sam Altman. Driving the news: The complaint, filed in the federal district court in Fort Worth, Texas, takes aim at a partnership announced last year between Apple and OpenAI to integrate ChatGPT into the iPhone's operating system. * "Apple's conduct inhibits the growth of AI and super apps by allowing OpenAI to maintain its monopoly and curtail innovation and investment in generative AI chatbots that would develop into super apps that replace iPhone functionality," the lawsuit contends. * Spokespeople for Apple and OpenAI did not immediately respond to requests for comment. * In a post on X on Aug. 11, Musk threatened to sue Apple, saying that the iPhone maker "makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation." This is a developing story.

Elon Musk's xAI sues Apple and OpenAI over App Store drama

Elon Musk threatened to sue Apple for favoring ChatGPT over Grok in the App Store -- and now he has. On Monday, Musk's AI company xAI officially filed a lawsuit against Apple as well as ChatGPT creator OpenAI over the two companies' business partnership. Don't miss out on our latest stories: Add Mashable as a trusted news source in Google. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," reads the opening of xAI's lawsuit. "Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing," the suit continues. xAI's suit claims that Apple boosts ChatGPT in the Apple App Store to the detriment of competing AI apps, like xAI's Grok. "Apple has taken further steps to protect its monopoly in smartphones and to preference OpenAI by deprioritizing the apps of competing generative AI chatbots and super apps in its App Store rankings, and it has dragged out its App Store app review processes for those competitors," the lawsuit reads. Alleged abuses of the App Store charts are only part of the suit, however. xAI's lawsuit also claims that Apple and OpenAI are partaking in monopolistic activities more broadly. According to xAI, Apple's partnership with OpenAI, which includes integrating ChatGPT into Mac and iOS devices to power some Apple Intelligence features, has boxed Musk's company out of the AI race. "As a result of Apple and OpenAI's exclusive arrangement, ChatGPT is the only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones," reads xAI's lawsuit. "This makes it hard for competitors of ChatGPT's generative AI chatbot and super apps powered by generative AI chatbots to scale and innovate." Prior to the lawsuit, Musk claimed on his social media platform X that it was "impossible for any AI company besides OpenAI to reach #1 in the App Store." This Tweet is currently unavailable. It might be loading or has been removed. However, users on Musk's platform disputed this using X's Community Notes feature. The Community Note embedded on Musk's posts provides proof that OpenAI competitors like DeepSeek and Perplexity have all reached #1 in App Store, even after the Apple and OpenAI partnership was formed. Even so, a recent antitrust decision may work in Musk's favor. Last year Google lost an antitrust case concerning its paid partnership with Apple, which provided Google with the default search engine position on Apple's mobile devices. While there are differences between Apple's relationship with both companies, that case could become relevant here. So, does Musk and xAI have a case here, or is he simply unhappy that his beloved Grok app hasn't taken off like its AI competitors? We'll soon find out as this plays out in court.

Musk's AI startup sues OpenAI and Apple over anticompetitive conduct

Lawsuit accuses companies of 'conspiracy to monopolize markets for smartphones and generative AI chatbots' Elon Musk's artificial intelligence startup xAI is suing OpenAI and Apple over allegations that they are engaging in anticompetitive conduct. The lawsuit, filed in a Texas court on Monday, accuses the companies of "a conspiracy to monopolize the markets for smartphones and generative AI chatbots". Musk had earlier this month threatened to sue Apple and OpenAI, which makes ChatGPT, after claiming that Apple was "making it impossible" for any other AI companies to reach the top spot on its app store. Musk's xAI makes the Grok chatbot, which has struggled to become as prominent as ChatGPT. Musk's lawsuit challenges a key partnership between Apple and OpenAI that was announced last year, in which the device maker integrated OpenAI's artificial intelligence capabilities into its operating systems. In claiming that their agreement "locked up markets," Musk's case is seeking to undo one of Apple's most significant forays into AI and a marquee deal for OpenAI. "Defendants entered an unlawful agreement and conspiracy to leverage Apple's monopoly power in the US smartphone market to maintain OpenAI's monopoly power in generative AI chatbots," the complaint states. It is also seeking to "recover billions in damages". OpenAI rejected Musk's allegations and framed the suit as part of his broader attacks against the company. "This latest filing is consistent with Mr Musk's ongoing pattern of harassment," an OpenAI spokesperson said. Apple did not immediately respond to a request for comment. The lawsuit is the latest front in the ongoing feud between Musk and Altman. The two tech billionaires founded OpenAI together in 2015, but have since had an increasingly public falling out which has frequently turned litigious. Musk left OpenAI after proposing to take over the company in 2018, and has since filed multiple lawsuits against the company over its plans to shift into a for-profit enterprise. Altman and OpenAI have rejected Musk's criticisms and framed him as a petty, vindictive former partner. "We're sad that it's come to this with someone whom we've deeply admired - someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we started making meaningful progress towards OpenAI's mission without him," OpenAI posted in a statement last year, following one of Musk's lawsuits. The spat between Altman and Musk resurged earlier this month after the latter's threat to sue Apple. Musk's claims that Apple was manipulating the app store's rankings to exclude other AI companies resulted in an exchange of posts between the two tech moguls challenging and insulting each other. "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 posted in response to Musk's claims that Apple was favoring OpenAI. OpenAI is currently eyeing a $500bn valuation, which would make it the most valuable privately held company, exceeding Musk's SpaceX rocket maker which is the current title holder, at $350bn.

AppleInsider.com

After claiming that his Grok AI was being denied exposure that Elon Musk feels he's entitled to in the App Store, he has followed through and has filed an antitrust lawsuit. Musk originally made the claim on Twitter, saying Apple's deal with OpenAI meant the App Store would now never promote any rivals. The claim was then refuted by the facts, by online users, by Apple, and even by Grok AI itself. Musk's xAI company has filed suit against both Apple and OpenAI. The suit is specifically concerning AI competition, and App Store rankings. There are few details as yet, but the suit has been filed in a US federal court in Texas. It claims that OpenAI and Apple are illegally conspiring to thwart any AI competitors. Musk's legal team has a rough road ahead We spoke with lawyers last week, when Musk started saber-rattling. It's not clear what case Musk will make, as the claims are baseless. As Musk's own Grok noted when asked by a social media user, other companies other than OpenAI have been on the top of the App Store. DeepSeek was on it in January 2025. Perplexity was on the top of the App Store on July 18, and both happened after the June 2024 OpenAI and Apple partnership. Further complicating the suit, app data aggregator SensorTower has also noted that Grok was on the op of the App Store on February 18 and February 19 after Grok-3 was made free. It has been argued that if Musk were to file such a suit, it could damage Apple because the App Store is currently multiple facing regulatory pressures worldwide. Yet with no evidence to support his assertions, and with much evidence against him, this appears to be little more than a base rallying point, around a nuisance suit that should be easily defeatable in court. Another round of Apple versus Musk This isn't the first time Apple and Musk have crossed paths. The controversial figure has previously shared misinformation about Apple and OpenAI's deal, likely in irritation about not being offered similar. Musk also railed against Apple for not using his satellite service, not advertising on X (they've since returned under government pressure), and even fought against Apple's 30% commission. Of course, Apple has no obligation to promote X or Grok. The stigma of those apps and the communities and controversies found on each are likely more than enough to drive Apple and its editorial staff far away from promoting either. And if Musk wants to cry antitrust under the veil of consumer choice, perhaps he can look at allowing Tesla vehicles to run CarPlay. You know, in the name of freedom of choice. It is difficult to ascertain exactly how the right-leaning government will react to such a lawsuit as it likely depends on the district of the lawsuit and the judge assigned. Apple also has a right to pick and choose with whom it chooses to do business with in the free market.

Elon Musk's xAI sues Apple and OpenAI over AI competition

Elon Musk's artificial intelligence company xAI is suing Apple and OpenAI in a Texas federal court for allegedly scheming to block other AI competition after threatening a suit weeks ago. The suit filed Monday claims that "working in tandem" Apple and OpenAI have "locked up markets" in order to "maintain their monopolies" and prevent others "like X and xAI from competing." It added that xAI is suing to stop the two tech giants from "perpetrating their anticompetitive scheme." Musk's AI company seeks billions in damages. OpenAI and Apple announced a partnership back in June 2024 through which the iPhone maker planned to incorporate ChatGPT -- OpenAI's chatbot -- into its iOS, iPadOS, macOS, Siri, and Writing Tools later that year. "As a result of Apple and OpenAI's exclusive arrangement, ChatGPT is the only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones," the lawsuit said. "This makes it hard for competitors of ChatGPT's generative AI chatbot and super apps powered by generative AI chatbots to scale and innovate." The lawsuit claims Apple is showing preference to OpenAI in its App Store by "deprioritizing the apps of competing generative AI chatbots and super apps" in its App Store rankings. Apple and OpenAI did not immediately respond to Quartz request for comment. On Aug. 11, Musk said in a post on social media site X that xAI would take "immediate legal action" against the iPhone maker for alleged prejudice in its App Store. Musk went on to claim that Apple won't let any AI app reach the top spot in its store other than OpenAI's ChatGPT. "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation. xAI will take immediate legal action," he said. OpenAI CEO Sam Altman responded to Musk's claim in his own post on X. "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 said. A community note was added to Musk's post negating his allegations; it cited articles that detail times when other AI companies, including DeepSeek and Perplexity, held the top spot in Apple's App Store after its OpenAI deal was announced. Musk originally helped start OpenAI as a nonprofit. Last year he sued the company and its CEO Sam Altman for alleged breach of contract, CNBC reported, and in the lawsuit Musk tried to block the ChatGPT owner from turning into a for-profit company. xAI updated its own status and is no longer a public benefit corporation, according to Nevada state records, CNBC reported Musk, along with a group of investors, made a bid to buy the nonprofit that owns OpenAI for $97.4 billion in February. A court filing from Thursday found that Musk had asked Meta CEO Mark Zuckerberg to get involved in his bid.

Musk sues Apple and OpenAI, accusing them of being 'monopolists' in AI space

Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favoring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, X Corp. -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays Apple as a company that views AI as an "existential threat" to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing Apple of trying to shield the iPhone from do-everything "super apps," such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against Apple last year by the U.S. Department of Justice. The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a nonprofit research lab for the public good. OpenAI has countered with a lawsuit against Musk accusing him of harassment -- an allegation that the company cited in its response to Monday's antitrust lawsuit. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," OpenAI said in a statement. Apple didn't immediately respond to a request for comment. The crux of the lawsuit revolves around Apple's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device couldn't satisfy user needs. The partnership announced last year was part of Apple's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn't been able to deliver on all its promises. Apple's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that's unavailable to Grok and other would-be competitors because it's currently an exclusive partnership. The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the Apple app store's AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT. The lawsuit doesn't mention the potential threat that ChatGPT could also pose to Apple and the iPhone's future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

Musk's xAI sues Apple, OpenAI alleging antitrust violations

Elon Musk's companies xAI and X filed a sweeping US antitrust lawsuit Monday against Apple and OpenAI, alleging the tech giants formed an illegal partnership to stifle competition in artificial intelligence and smartphone markets. The 61-page complaint, filed in federal court in Texas, accuses Apple and OpenAI of entering an exclusive deal that makes OpenAI's ChatGPT the only generative AI chatbot integrated into Apple's iPhone operating system, while blocking rivals like xAI's Grok. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit states. The plaintiffs claim Apple holds 65% of the US smartphone market, while OpenAI controls at least 80% of the generative AI chatbot market through ChatGPT. Apple and OpenAI announced their partnership in June 2024, making ChatGPT the exclusive AI assistant accessible through Apple's Siri voice assistant and other iPhone features. The lawsuit alleges this arrangement gives ChatGPT exclusive access to "billions of user prompts" from hundreds of millions of iPhone users. The complaint also accuses Apple of manipulating App Store rankings to favor ChatGPT while delaying approval of updates to the Grok app. Musk's companies are seeking billions in damages and a permanent injunction to stop the alleged anticompetitive practices. They have demanded a jury trial. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," OpenAI said in a statement to AFP. Apple did not immediately respond to a request for comment. The lawsuit follows threats Musk made earlier this month that triggered a fiery exchange with OpenAI CEO Sam Altman. Altman called Musk's accusation of ranking manipulation "remarkable," charging that Musk himself "manipulates X to benefit himself and his own companies and harm his competitors and people he doesn't like." Musk called Altman a "liar" in the heated exchange. Both men were original founders of OpenAI before Musk's departure in 2018 and now have a highly conflictual relationship. Musk founded xAI in 2023 to compete with OpenAI and other major AI players that have poured billions of dollars into AI since the blockbuster launch of the first version of OpenAI's ChatGPT in late 2022.

Elon Musk drags Apple to court for favoring ChatGPT a little too much

Elon Musk has filed a lawsuit against Apple (once again), alleging that the company is suppressing rival AI products to favor ChatGPT-maker OpenAI. At the center of the lawsuit is Grok, an AI chatbot developed by Musk-led xAI, and how it has allegedly been throttled to favor ChatGPT on the App Store for exposure. What is happening? Over the past couple of weeks, Musk has posted about Apple not showing Grok as "Must Have" app on the App Store, even though it appeared in the top ten rankings. "Grok is the smartest AI in the world on the toughest tests and just came first by far in coding, but is not mentioned at all under "AI" by Apple!," Musk wrote in another post. Following a series of vexed posts, Musk shared that they have no other option left except taking legal action against Apple. The lawsuit was eventually filed on August 25th in the district court of Texas (Fort Worth Division) and describes the subject matter as "a tale of two monopolists joining forces to ensure their continued dominance." Recommended Videos The core argument is that Apple has inked deals with OpenAI to license the underlying ChatGPT tech for its ecosystem of products, including iPhones. In the wake of the partnership, Apple has allegedly been promoting ChatGPT on the App Store to such an extent that it has become impossible for rival AI products such as Grok to compete for exposure. "Apple has taken further steps to protect its monopoly in smartphones and to preference OpenAI by deprioritizing the apps of competing generative AI chatbots and super apps in its App Store rankings, and it has dragged out its App Store app review processes for those competitors," says the lawsuit. Musk also targets the non-transparent "algorithmic recommendations" and "curated lists selected by experts" methods used to highlight apps in the "Top Apps" and "Must Have Apps" lists on the App Store. It alleges that both methods are prone to bias and that they have favored Apple and OpenAI. It goes beyond the App Store situation The lawsuit also highlights the Apple Intelligence situation, which is built atop the GPT AI stack provided by OpenAI. Apple Intelligence is now available on millions of iPhones, iPads, and Macs, while relying on OpenAI's tech for a wide range of features such as Writing Tools, Visual Intelligence, and image generation, among others. Additionally, ChatGPT is the default choice for any queries that Siri can't natively handle. Thanks to this first-party integration, users can't switch to any other AI chatbot and must only get their tasks handled by ChatGPT, if they tap into any of the tools offered with the Apple Intelligence bundle. That's another crucial point of contention highlighted in the lawsuit. ChatGPT essentially has access to millions of Apple devices without ever giving other AI products a chance at competing against it, as per the lawsuit. "Because OpenAI's ChatGPT is the only generative AI chatbot integrated with Apple's iPhone and can be accessed by users through that integration, users that might otherwise download other generative AI chatbots from Apple's App Store have no reason to do so," adds the lawsuit. Ultimately, the lawsuit argues that Apple and OpenAI both have a monopoly position in their respective markets, and that their conduct has harmed competitors as well as users. The lawsuit ends with a demand for a jury trial and seeks an end to the anti-competitive actions highlighted in the lawsuit, aside from financial damages and legal costs.

Musk sues Apple and ChatGPT maker for 'conspiring' against him

Elon Musk has filed a lawsuit against Apple and ChatGPT maker OpenAI, accusing the companies of conspiring against his AI business. The lawsuit, filed by Mr Musk's xAI and his social media platform X, alleges that the two tech giants have engaged in an "anti-competitive" scheme to maintain their dominance. It said an exclusive agreement to embed ChatGPT's software in the iPhone had made it harder for rivals such as xAI's chatbot Grok to scale and innovate. It also accused Apple of de-prioritising other chatbots and so-called "super apps" in its app store. The lawsuit, which is seeking billions of dollars in damages, added: "Working in tandem, defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." The lawsuit, filed in federal court in Texas, follows up on Mr Musk's threat to sue Apple and comes after he engaged in a bitter public dispute with OpenAI founder Sam Altman.

Elon Musk Sues Apple, OpenAI Over iPhone AI 'Monopoly' - Decrypt

Xai and X Corp. are seeking billions in damages and court orders to end the exclusive arrangement. Elon Musk's X Corp. and xAI filed a federal antitrust lawsuit Monday against Apple and OpenAI, claiming the tech giants entered an exclusive arrangement that blocks competitors from iPhone AI integration while cementing lopsided dominance in the chatbot market. The complaint, filed in the Northern District of Texas, seeks "billions" in damages and court orders to end what the plaintiffs call an anticompetitive conspiracy between "two monopolists joining forces to ensure their continued dominance." The lawsuit targets Apple's June 2024 decision to make ChatGPT the exclusive AI chatbot integrated into iOS. ChatGPT controls "at least 80 percent" of the generative AI chatbot market while Grok holds only "a few percent" despite claimed superior capabilities, the filing says. The arrangement gives ChatGPT "exclusive access to billions of user prompts originating from hundreds of millions of iPhones" while shutting out competitors like xAI's Grok, the firms allege. "Apple's exclusive ChatGPT deal has left rivals like Grok unable to match the data scale, and they continue to fall behind," Midhun Krishna M, MLOps engineer at Juno AI, told Decrypt. The integration gives OpenAI control of the "largest real-time feedback loop," he added, ensuring "accuracy and dominance." The exclusive integration means iPhone users can receive Siri responses powered by ChatGPT, use AI for photo analysis, and access writing tools, all exclusively through OpenAI's technology. The lawsuit also accuses Apple of manipulating App Store rankings to favor ChatGPT while suppressing competitors. Earlier in August, Musk challenged Apple over App Store rankings, questioning why his apps don't appear in the "Must Have" section despite high rankings. Despite Grok ranking second in Apple's "Productivity" category and X ranking first in "News," neither appears in the prominent "Must-Have Apps" section where ChatGPT is featured, according to the firms. They also allege Apple delayed approval for Grok app updates and rejected featuring requests, even when new capabilities were added. The complaint quotes former Apple App Store director Phillip Shoemaker acknowledging that rankings are often "arbitrary" and that "Apple has struggled with using the App Store as a weapon against competitors." Apple fears "super apps" could make iPhones obsolete, threatening its 65 percent U.S. smartphone market share, the filing reads. OpenAI plans to raise ChatGPT's premium fee to $44 by 2029, and share revenue with Apple, according to the complaint, which would then collect what it calls "monopoly rents." The complaint lists Sherman Act violations such as restraint of trade, monopolization, attempted monopolization, and conspiracy, together with civil conspiracy, unfair competition, and Texas antitrust violations. X Corp. and xAI are demanding injunctive relief ending the exclusive arrangement and requiring equal integration opportunities for competitors.

Eliza Labs Sues X, Accuses Elon Musk's Platform of Copying AI and Cutting Them Off - Decrypt

Eliza Labs seeks damages, reinstatement, and profits from allegedly misused technology. Eliza Labs and its founder, Shaw Walters, are suing Elon Musk's X, claiming the company tricked them into handing over technical details about their AI tools, then banned them from the platform and launched copycat products. The lawsuit says X unfairly used its monopoly power, damaged Eliza's reputation, blocked its access to customers and investors, and profited from Eliza's innovations. Eliza Labs isn't naming a dollar figure, but is asking the court to make X return its "ill-gotten gains," pay for Eliza's losses, and add treble damages and punitive damages on top. Eliza Labs is the company behind ElizaOS, an open-source framework for building autonomous AI agents that can interact and perform tasks across blockchain networks. The complaint, filed Wednesday in the U.S. District Court for the Northern District of California, claimed Eliza was invited in, mined for information, and ultimately pushed aside -- with its own framework allegedly repurposed for X's competing AI product, Grok. The lawsuit claims that in early 2025, X invited Walters to meet after Eliza's open-source tools gained traction with developers. The platform lets users build autonomous AI agents and 3D avatars with real-time chat, voice, video, and phone integration. Soon after, X allegedly demanded a $50,000-per-month enterprise license to continue operating on the platform, before suspending Eliza Labs and Walters' accounts for violating X's terms and conditions. Internal messages cited in the complaint show an X executive warning that Eliza Labs had triggered legal action for API circumvention, unverified government customers, and unapproved use cases. Eliza Labs claimed that X then offered to pause that process in exchange for further talks. While the accounts remained inactive, Walters says X continued requesting technical documentation under the guise of resolving the issue -- then launched nearly identical AI agents under its xAI brand. According to legal expert Kelly Lawton-Abbott, partner at law firm SSM, the lawsuit breaks new ground in the AI space -- but faces long odds. "There aren't many cases in the AI space on anticompetitive behavior," Lawton-Abbott told Decrypt. "Because Eliza is an open-source software platform, they don't have the same protection of their software that they would have if it were proprietary." According to Lawton-Abbott, the burden of proof in federal antitrust claims is high. "For antitrust, it's a pretty high standard," she said. "I think that's going to be a hard one for them to succeed on." Still, Lawton-Abbott said the lawsuit may be more about leverage than litigation. "I wouldn't expect this to move forward," she said. "I think it's probably going to be leverage for a settlement." Lawton-Abbott also acknowledged the underlying power dynamic between the companies. The suit claims X never responded to Eliza Labs' request to have its accounts reinstated, and instead launched its own AI agents with similar features. In July, X's artificial intelligence division, xAI, rolled out "Companions," a new feature in the Grok chatbot app. The launch included Ani, a gothic anime-style avatar that greets users with "Hey babe!" and Rudy, a hoodie-wearing red panda for more playful interactions. X Corp. has not publicly responded to the complaint. However, its AI tool, Grok, was sanguine about Eliza prevailing in court. "This case has intriguing hooks but faces uphill battles, especially against a platform like X with deep pockets and precedent-favoring defenses." It said. "Overall, this has 40-50% odds of surviving dismissal -- fraud/UCL claims are stickier than antitrust, which often fails against tech giants."

Musk's xAI sues Apple, OpenAI alleging antitrust violations

Washington (AFP) - Elon Musk's companies xAI and X filed a sweeping US antitrust lawsuit Monday against Apple and OpenAI, alleging the tech giants formed an illegal partnership to stifle competition in artificial intelligence and smartphone markets. The 61-page complaint, filed in federal court in Texas, accuses Apple and OpenAI of entering an exclusive deal that makes OpenAI's ChatGPT the only generative AI chatbot integrated into Apple's iPhone operating system, while blocking rivals like xAI's Grok. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit states. The plaintiffs claim Apple holds 65 percent of the US smartphone market, while OpenAI controls at least 80 percent of the generative AI chatbot market through ChatGPT. Apple and OpenAI announced their partnership in June 2024, making ChatGPT the exclusive AI assistant accessible through Apple's Siri voice assistant and other iPhone features. The lawsuit alleges this arrangement gives ChatGPT exclusive access to "billions of user prompts" from hundreds of millions of iPhone users. The complaint also accuses Apple of manipulating App Store rankings to favor ChatGPT while delaying approval of updates to the Grok app. Musk's companies are seeking billions in damages and a permanent injunction to stop the alleged anticompetitive practices. They have demanded a jury trial. "This latest filing is consistent with Mr Musk's ongoing pattern of harassment," OpenAI said in a statement to AFP. Apple did not immediately respond to a request for comment. The lawsuit follows threats Musk made earlier this month that triggered a fiery exchange with OpenAI CEO Sam Altman. Altman called Musk's accusation of ranking manipulation "remarkable," charging that Musk himself "manipulates X to benefit himself and his own companies and harm his competitors and people he doesn't like." Musk called Altman a "liar" in the heated exchange. Both men were original founders of OpenAI before Musk's departure in 2018 and now have a highly conflictual relationship. Musk founded xAI in 2023 to compete with OpenAI and other major AI players that have poured billions of dollars into AI since the blockbuster launch of the first version of OpenAI's ChatGPT in late 2022.

Elon Musk's xAI sues Apple and OpenAI over ChatGPT exclusivity on iOS devices, accuses them of 'thwarting competition and innovation in the generative AI chatbot market'

Not satisfied with getting OpenAI to say that his dad could beat up Sam Altman's dad, Elon Musk has now filed a lawsuit against Apple and Open AI, accusing them of "joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence." "AI is fundamentally reshaping our world," the lawsuit (via The Verge) says, and "the consensus among global business leaders, academics, and scientists is that AI adoption is both unavoidable and transformational." Companies that miss the boat will find themselves at a major disadvantage: Companies like Apple, for instance, which was so focused "on making iterative changes to its smartphones" that it was "blindsided by major innovations in AI," and is now at risk of becoming another Nokia -- a once-dominant force brought low by a rapidly shifting technological landscape. Thus Apple has teamed up with OpenAI, which the lawsuit claims has established its own monopoly in the field of generative AI chatbots, leaving Musk's xAI unable to gain "more than a few percent of the market despite accolades about its superior features." "Just like Apple, OpenAI has incentive to protect its monopoly by thwarting competition and innovation in the generative AI chatbot market," the suit states. "And just like Apple, it has done so in violation of the antitrust laws." The complaint centers on Apple's decision to integrate OpenAI's ChatGPT into iOS, and subsequent "deprioritizing" of other chatbots and "super apps" in App Store rankings. This not only forces iPhone users to use ChatGPT, the lawsuit claims, it also harms the makers of competing chatbots by impairing their ability to train: "As a result of Apple and OpenAI's exclusive arrangement, ChatGPT is the only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones. This makes it hard for competitors of ChatGPT's generative AI chatbot and super apps powered by generative AI chatbots to scale and innovate." The lawsuit also alleges that the deal between Apple and OpenAI is harming X, the social media platform formerly known as Twitter, which Musk acquired in 2022 and promptly set on fire. "The harms to xAI and its generative AI chatbot, Grok, also harm X's 'everything app'," the suit states. "Because Grok's functionality is a key feature of the X app, the X app is more attractive the better Grok performs. And because Defendants' conduct makes Grok less able to fairly compete with ChatGPT, X's app (and thus X) suffers in the process. This results in fewer X app customers and subscriptions, and less revenue and profits, ultimately creating a depressed enterprise value for X relative to the but-for world." This isn't the first time and Musk and Altman have clashed: Musk sued OpenAI and Altman in 2024, claiming that he was "betrayed" by OpenAI's attempted transition into a for-profit company, although OpenAI later published emails and DMs showing that Musk was eager to go for-profit as far back as 2017, but left the company when his demand for "majority equity, absolute control, and to be CEO of the for-profit" was rejected. In February 2025, Musk made noise about buying OpenAI for $97.4 billion -- an unsolicited offer that was rejected outright -- and then, earlier this month, the CEOs exchanged harsh words on social media in what proved to be a prelude to this action.

Elon Musk accuses Apple and OpenAI of stifling AI competition in antitrust lawsuit

Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favoring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, X Corp. -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays Apple as a company that views AI as an "existential threat" to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing Apple of trying to shield the iPhone from do-everything "super apps," such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against Apple last year by the U.S. Department of Justice. The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a nonprofit research lab for the public good. OpenAI has countered with a lawsuit against Musk accusing him of harassment -- an allegation that the company cited in its response to Monday's antitrust lawsuit. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," OpenAI said in a statement. Apple didn't immediately respond to a request for comment. The crux of the lawsuit revolves around Apple's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device couldn't satisfy user needs. The partnership announced last year was part of Apple's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn't been able to deliver on all its promises. Apple's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that's unavailable to Grok and other would-be competitors because it's currently an exclusive partnership. The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the Apple app store's AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT. The lawsuit doesn't mention the potential threat that ChatGPT could also pose to Apple and the iPhone's future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

Elon Musk's xAI sues Apple and OpenAI over stifling AI competition

"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," the lawsuit reads. Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT creator are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favouring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, X Corp -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays Apple as a company that views AI as an "existential threat" to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing Apple of trying to shield the iPhone from do-everything "super apps," such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against Apple last year by the US Department of Justice. The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a nonprofit research lab for the public good. OpenAI has countered with a lawsuit against Musk accusing him of harassment -- an allegation that the company cited in its response to Monday's antitrust lawsuit. "This latest filing is consistent withMr Musk's ongoing pattern of harassment," OpenAI said in a statement. Apple didn't immediately respond to a request for comment. The crux of the lawsuit revolves around Apple's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device couldn't satisfy user needs. The partnership announced last year was part of Apple's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn't been able to deliver on all its promises. Apple's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that's unavailable to Grok and other would-be competitors because it's currently an exclusive partnership. The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the Apple App Store's AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT. The lawsuit doesn't mention the potential threat that ChatGPT could also pose to Apple and the iPhone's future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

Elon Musk's xAI sues Apple and OpenAI over alleged anticompetitive practices - SiliconANGLE

Elon Musk's xAI sues Apple and OpenAI over alleged anticompetitive practices Elon Musk's xAI Holdings Corp. today sued Apple Inc. and OpenAI for allegedly engaging in anticompetitive practices. The move comes a few weeks after Musk previewed the complaint in a post on X. He accused Apple of breaching antitrust rules by making it impossible for OpenAI competitors to top the App Store's ranking of the most downloaded apps. In response, X users pointed out that DeepSeek briefly held the top spot earlier this year. The App Store is the first focus of today's lawsuit. The complaint, which was filed with a federal court in Fort Worth, claims that Apple manipulated the App Store to give OpenAI an unfair edge over rivals such as xAI's Grok app. Furthermore, xAI charges that Apple spent too much time reviewing updates to Grok. "Defendants have caused fewer Texas iPhone users to download Plaintiffs' apps by manipulating App Store rankings and delaying approval for updates to xAI's Grok app," xAI wrote in the complaint. The second focus of the lawsuit is a product collaboration that the iPhone maker launched with OpenAI last June. As part of the partnership, Apple has integrated ChatGPT into Apple Intelligence, a set of artificial intelligence features built into its devices. The feature suite enables users to generate text, ask ChatGPT questions and perform certain other tasks. Today's lawsuit charges that the partnership gives OpenAI an unfair competitive advantage. The prompts that consumers enter into Apple Intelligence can be turned into AI training datasets. According to xAI, those datasets could be used to boost the quality of large language models' output. The company goes on to argue that Apple has given OpenAI exclusive access to the datasets and thereby harmed the competition. "Plaintiffs have been foreclosed from a significant number of generative AI chatbot prompts, deprived of scale, and thwarted in their abilities to innovate and improve the quality and competitiveness of their offerings," reads the lawsuit. The complaint also charges that the Apple-OpenAI partnership harms competition in the smartphone market. According to xAI, the partnership is holding back the development of AI-powered "super apps" that can perform a wide range of tasks. The company argues that such super apps would enable low-cost handsets to compete more effectively with the iPhone. "Customers in the smartphone market are harmed by this conduct because they cannot readily switch to less expensive smartphones and use generative AI chatbots and super apps that match or replace the features offered by the iPhone," xAI argues.

xAI sues Apple and OpenAI over alleged anticompetitive practices - SiliconANGLE

xAI sues Apple and OpenAI over alleged anticompetitive practices Elon Musk's xAI Holdings Corp. today sued Apple Inc. and OpenAI for allegedly engaging in anticompetitive practices. The move comes a few weeks after Musk previewed the complaint in a post on X. He accused Apple of breaching antitrust rules by making it impossible for OpenAI competitors to top the App Store's ranking of the most downloaded apps. In response, X users pointed out that DeepSeek briefly held the top spot earlier this year. The App Store is the first focus of today's lawsuit. The complaint, which was filed with a federal court in Fort Worth, claims that Apple manipulated the App Store to give OpenAI an unfair edge over rivals such as xAI's Grok app. Furthermore, xAI charges that Apple spent too much time reviewing updates to Grok. "Defendants have caused fewer Texas iPhone users to download Plaintiffs' apps by manipulating App Store rankings and delaying approval for updates to xAI's Grok app," xAI wrote in the complaint. The second focus of the lawsuit is a product collaboration that the iPhone maker launched with OpenAI last June. As part of the partnership, Apple has integrated ChatGPT into Apple Intelligence, a set of artificial intelligence features built into its devices. The feature suite enables users to generate text, ask ChatGPT questions and perform certain other tasks. Today's lawsuit charges that the partnership gives OpenAI an unfair competitive advantage. The prompts that consumers enter into Apple Intelligence can be turned into AI training datasets. According to xAI, those datasets could be used to boost the quality of large language models' output. The company goes on to argue that Apple has given OpenAI exclusive access to the datasets and thereby harmed the competition. "Plaintiffs have been foreclosed from a significant number of generative AI chatbot prompts, deprived of scale, and thwarted in their abilities to innovate and improve the quality and competitiveness of their offerings," reads the lawsuit. The complaint also charges that the Apple-OpenAI partnership harms competition in the smartphone market. According to xAI, the partnership is holding back the development of AI-powered "super apps" that can perform a wide range of tasks. The company argues that such super apps would enable low-cost handsets to compete more effectively with the iPhone. "Customers in the smartphone market are harmed by this conduct because they cannot readily switch to less expensive smartphones and use generative AI chatbots and super apps that match or replace the features offered by the iPhone," xAI argues.

Musk's xAI sues Apple and OpenAI over stifling AI competition

Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favoring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, X Corp. -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone.

Musk's xAI sues Apple and OpenAI, alleging 'anticompetitive scheme'

The lawsuit argues that Apple and OpenAI are contributing to the monopolisation of the artificial intelligence sector. Elon Musk's artificial intelligence platform xAI is suing both Apple and OpenAI, claiming that the companies are creating an anticompetitive landscape that monopolises and locks the market, preventing "innovators like X and xAI from competing". The lawsuit, which was filed on 25 Monday, in a Texas court, states that this is a " tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created - artificial intelligence". Musk argued that Apple and OpenAI are stifling the market and removing the option of choice for consumers, by working to build Altman's ChatGPT into iPhone technology via an exclusive deal and effectively phasing out other technologies. Additionally, in the lawsuit, xAI accused Apple of "deprioritising the apps of competing generative AI chatbots and super apps in its App Store rankings", stating that both X and Grok have had high rankings on the system yet neither appear in the App Store's Must-Have Apps section. It reads, "This is also true of other generative AI chatbot and super app competitors. In fact, ChatGPT is the only generative AI chatbot with an app that appeared in the "Must-Have Apps" section of the App Store on August 24, 2025." The lawsuit warns that, unless the courts uphold the case, Apple and OpenAI's "unlawful conduct" will continue to thwart both the competition and the consumer, as they suffer the consequences of an anticompetitive marketplace. In a statement issued to The Verge, regarding the lawsuit, OpenAI spokesperson Kayla Wood said, "This latest filing is consistent with Mr Musk's ongoing pattern of harassment." Since parting ways with OpenAI in 2018, Musk's interactions with Sam Altman and the company have become increasingly volatile, with Musk accusing Altman of steering the organisation away from its goal of 'benefitting humanity', in a lawsuit that was raised in February 2024 and quietly dropped later that year. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Apple, OpenAI Have Locked Up Markets to Maintain Their Monopolies: xAI in Lawsuit | AIM

Elon Musk's X Corp and xAI have filed a lawsuit against Apple and OpenAI, accusing the companies of engaging in monopolistic practices in the AI ecosystem. The lawsuit originates from Apple's partnership with OpenAI to integrate ChatGPT into Apple Intelligence. The lawsuit describes it as an "exclusive arrangement", which prevents the use of other AI chatbots even if users prefer to do so. "As a result of Apple and OpenAI's exclusive arrangement, ChatGPT is the only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones," reads the document of the lawsuit, which was shared in a Reuters report. The case further accuses Apple of taking "further steps to protect its monopoly" by giving a p

Elon Musk has only one chance of forcing Apple to promote Grok

Apple has struggled to add its own advanced AI features -- including a chatbot -- to its operating systems for the iPhone, iPad, and Mac. At its June 2024 Worldwide Developers Conference (WWDC), Apple instead announced an exclusive agreement with OpenAI, making ChatGPT the default chatbot option on its devices. Musk and xAI argue that the deal hurts rivals, including xAI's Grok chatbot. "Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing," reads the lawsuit, which was filed in the U.S. District Court for the Northern District of Texas. "Plaintiffs bring this suit to stop Defendants from perpetrating their anticompetitive scheme and to recover billions in damages." Currently, iPhone users who want Grok must download its stand-alone app. Musk and xAI contend that Apple should be compelled to let users easily select any chatbot. While Apple has spoken about integrating other models such as Google's Gemini and Anthropic's Claude, it has not acted on those talks so far.

Elon Musk accuses Apple and OpenAI of stifling AI competition in antitrust lawsuit

Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favoring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, X Corp. -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays Apple as a company that views AI as an "existential threat" to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing Apple of trying to shield the iPhone from do-everything "super apps," such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against Apple last year by the U.S. Department of Justice. The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a nonprofit research lab for the public good. OpenAI has countered with a lawsuit against Musk accusing him of harassment -- an allegation that the company cited in its response to Monday's antitrust lawsuit. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," OpenAI said in a statement. Apple didn't immediately respond to a request for comment. The crux of the lawsuit revolves around Apple's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device couldn't satisfy user needs. The partnership announced last year was part of Apple's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn't been able to deliver on all its promises. Apple's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that's unavailable to Grok and other would-be competitors because it's currently an exclusive partnership. The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the Apple app store's AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT. The lawsuit doesn't mention the potential threat that ChatGPT could also pose to Apple and the iPhone's future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

Elon Musk accuses of Apple and OpenAI of stifling AI competition in antitrust lawsuit

Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favoring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, X Corp. -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays Apple as a company that views AI as an "existential threat" to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing Apple of trying to shield the iPhone from do-everything "super apps," such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against Apple last year by the U.S. Department of Justice. The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a nonprofit research lab for the public good. OpenAI has countered with a lawsuit against Musk accusing him of harassment -- an allegation that the company cited in its response to Monday's antitrust lawsuit. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," OpenAI said in a statement. Apple didn't immediately respond to a request for comment. The crux of the lawsuit revolves around Apple's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device couldn't satisfy user needs. The partnership announced last year was part of Apple's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn't been able to deliver on all its promises. Apple's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that's unavailable to Grok and other would-be competitors because it's currently an exclusive partnership. The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the Apple app store's AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT. The lawsuit doesn't mention the potential threat that ChatGPT could also pose to Apple and the iPhone's future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

Elon Musk's xAI sues Apple, OpenAI over alleged scheme to dominate AI

The exclusive agreement between the world's largest smartphone producer and a top AI firm effectively shut other AI companies out of an opportunity to reach tens of millions of customers, according to the lawsuit filed in a Texas federal court. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit says. The lawsuit aims to "stop Defendants from perpetrating their anticompetitive scheme and to recover billions in damages," according to the filing. Last year, Apple unveiled a set of customizable tools that rely on generative AI, including a language feature that summarizes messages as well as an image generator. The product rollout marked the culmination of an agreement between Apple and OpenAI, the companies said. The AI capability, called Apple Intelligence, amounted to the "next big step for Apple," CEO Tim Cook said in June of 2024. According to the lawsuit, the integration of OpenAI technology into the operating system of the iPhone left users without the ability to access AI products from other firms, such as xAI. In turn, the flood of user activity enjoyed by OpenAI gave the company valuable data with which to improve its products, the lawsuit says. "More users beget more prompts, and more prompts offer more opportunities to train the model, whose better features then attract even more users," the lawsuit says. In a separate lawsuit, Musk is suing OpenAI over an alleged betrayal of the company's founding mission in a sprint toward profits. Musk, the world's richest person, co-founded OpenAI but left the company in 2018. In a blog post last year, OpenAI rebutted Musk's claims, saying the firm had realized that a for-profit entity would be necessary to acquire the resources to develop high-powered AI in accordance with its mission. In a statement to ABC News on Monday, OpenAI rebuked Musk's new lawsuit. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," the company said. Apple did not immediately respond to ABC News' request for comment. In 2023, Musk launched xAI, vowing to develop a competitor with established offerings like ChatGPT. Within months, the company launched a chatbot called Grok, which can respond to prompts from users of Musk-owned social media platform X.

Elon Musk's xAI sues OpenAI and Apple over anti competitive ChatGPT-iPhone integration

TL;DR: Elon Musk's AI company xAI sued Apple and OpenAI, alleging an illegal partnership blocking competing AI apps like xAI's Grok from topping Apple App Store rankings. The lawsuit claims Apple's integration of ChatGPT unfairly limits competition, seeking billions in damages for anti-competitive practices. Elon Musk's artificial intelligence company xAI has sued Apple and ChatGPT creator OpenAI in US federal court in Texas on Monday, with xAI alleging Apple and OpenAI are illegally conspiring against the X, formerly Twitter, and Grok app. The lawsuit claims that OpenAI and Apple have engaged in a deal that doesn't allow for competing AI-based apps, such as xAI's Grok, to reach #1 on Apple App Store rankings. OpenAI and Apple entered into a partnership to integrate ChatGPT into Apple's iOS operating system, which directly injects the power of ChatGPT into Apple's iPhones, iPads, and Macs. The lawsuit claims that part of this agreement between the two companies is to prevent other innovators, such as X and xAI, from competing in Apple App Store rankings. xAI said it's seeking billions of dollars in damages. Musk wrote on X earlier this month that Apple's behavior "makes it impossible for any AI company besides OpenAI to reach #1 in the App Store," and in another X post on Monday the Tesla CEO wrote, "A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists." An OpenAI spokesperson responded to the lawsuit, writing, "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment." This isn't the only lawsuit Musk has launched against OpenAI and its CEO, Sam Altman, as Musk is suing both parties in federal court in California to prevent the company from converting from a non-profit to a for-profit business. Notably, Musk co-founded OpenAI with Altman in 2015 as a non-profit.

Elon Musk sues Apple and OpenAI over anticompetitive collusion

The suit claims Apple's integration of ChatGPT gives OpenAI a monopoly in generative AI chatbots and blocks fair competition. Elon Musk's X and xAI initiated legal action against Apple and OpenAI on Monday. The suit alleges anticompetitive collusion between the technology giants, aiming to stifle competition within the artificial intelligence and smartphone sectors. The filing underscores a continuing conflict involving Musk, Apple, and OpenAI. The lawsuit specifically addresses Apple's collaboration with OpenAI to integrate ChatGPT into its operating systems. The legal document asserts that Apple, in an attempt to maintain its dominance in the smartphone market, is working with OpenAI, which the suit characterizes as a "monopolist in the market for generative AI chatbots." The suit claims this partnership inhibits competition and innovation in the AI field. This legal challenge represents the latest episode in an ongoing series of disputes between Elon Musk and Sam Altman, CEO of OpenAI. Both figures have publicly criticized each other's business practices and strategies. Musk, a co-founder and former co-chair of OpenAI, previously filed a lawsuit to prevent OpenAI's transition to a for-profit model. He also made an unsuccessful bid to acquire OpenAI for $97.4 billion. Earlier this month, Musk voiced anticompetitive concerns regarding Apple and OpenAI on X, claiming that OpenAI holds an unfair advantage in the App Store. He asserted it is "impossible for any AI company besides OpenAI to reach #1 in the App Store." The partnership between Apple and OpenAI, initially announced in June, anticipates the release of collaborative features in December.

Agentic AI project Eliza Labs sues Elon Musk's xAI

Eliza Labs founder Shaw Walters said that xAI demanded more licensing fees from the agentic AI platform or face possible legal action. Agentic AI project Eliza Labs has filed a lawsuit against Elon Musk's xAI, claiming that the AI company engaged in monopolistic practices meant to "deplatform" agentic AI launchpads. The lawsuit claims that xAI attempted to "extract" valuable information, including technical documentation and usage figures related to the development of Eliza Labs' platform, to copy its ideas before "banishing" Eliza Labs from xAI. Eliza Labs co-founder Shaw Walters argues in the lawsuit that the relationship between the two companies started off amicably, with xAI inviting Walters to share ideas. He also said that they built on xAI's application programming interface (API) because it was free. Walters added: "The collaborative tone turned transactional, just as X was launching Ani and a new version of Grok. Suddenly, they were demanding we pay $50,000 a month for an enterprise license -- $600,000 a year -- or face legal action. We were already paying them over $20,000 annually through various licenses and fees," Walters continued. Cointelegraph reached out to Walters, but he declined to provide any further comment. The lawsuit highlights the litigious nature of the artificial intelligence sector, as legal action continues to pile up surrounding monopolistic practices, intellectual property rights, and legal liabilities of AI service providers. Related: Eliza Labs launches auto.fun, a no-code AI spin on Pump.Fun The AI industry is still in its infancy, with key regulatory and legal questions left unanswered about the nascent technology. These regulatory grey zones exist alongside the legal issues traditionally faced by tech companies, such as trademark and patent infringement, making the AI sector a battleground ripe for litigation. In February 2024, Elon Musk filed a lawsuit against Sam Altman, the founder of OpenAI, and OpenAI itself, over the company's proposal to become a for-profit enterprise. Musk argued that the company abandoned its original mission as a non-profit, open-source project that would create tools for the public good. The lawsuit was withdrawn several months later, in June, but was withdrawn without prejudice, meaning that Musk can continue to reintroduce the lawsuit until it is dismissed or withdrawn with prejudice. In July 2024, The New York Times sued OpenAI over the use of copyrighted material in the company's large-language model (LLM), ChatGPT, demanding that detailed source material be provided for AI-generated content. Xai, an Ethereum-focused gaming company, sued Elon Musk's xAI over trademark infringement in August 2025, alleging that the similarity of the trademarks has confused consumers and damaged its business.

Elon Musk Accuses of Apple and OpenAI of Stifling AI Competition in Antitrust Lawsuit

Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in Texas federal court follows through on a threat that Musk made two weeks ago when he accused Apple of unfairly favoring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, X Corp. -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays Apple as a company that views AI as an "existential threat" to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing Apple of trying to shield the iPhone from do-everything "super apps," such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against Apple last year by the U.S. Department of Justice. The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a nonprofit research lab for the public good. OpenAI has countered with a lawsuit against Musk accusing him of harassment -- an allegation that the company cited in its response to Monday's antitrust lawsuit. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," OpenAI said in a statement. Apple didn't immediately respond to a request for comment. The crux of the lawsuit revolves around Apple's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device couldn't satisfy user needs. The partnership announced last year was part of Apple's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn't been able to deliver on all its promises. Apple's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that's unavailable to Grok and other would-be competitors because it's currently an exclusive partnership. The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the Apple app store's AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT. The lawsuit doesn't mention the potential threat that ChatGPT could also pose to Apple and the iPhone's future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

Musk's X, xAI Sue Apple, OpenAI for Alleged 'Anticompetitive Scheme'

Musk's companies X and xAI on Monday sued Apple and OpenAI in Texas federal court, alleging they have engaged in an "anticompetitive scheme" that prevents competitors like xAI's Grok from competing fairly and ascending the App Store charts. Two weeks ago, Musk had written on his X social media network that its parent company, xAI, would "take immediate legal action" against Apple for an alleged "antitrust violation" related to App Store rankings. The Tesla (TSLA) CEO -- whose xAI developed the Grok artificial intelligence chatbot and co-founded ChatGPT maker OpenAI -- wrote, "Hey @Apple App Store, why do you refuse to put either 𝕏 or Grok in your 'Must Have' section when 𝕏 is the #1 news app in the world and Grok is #5 among all apps?" Monday's complaint, filed in U.S. District Court for the Northern District of Texas, alleges that "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." An OpenAI spokesperson told Investopedia, "This latest filing is consistent with Mr Musk's ongoing pattern of harassment." Apple did not immediately respond to a request for comment.

Elon Musk's Companies, X and xAI, Sue Apple and OpenAI for 'Anticompetitive Scheme'

Earlier this month, Elon Musk, the owner of the AI startup xAI, posted on X that he'd be taking "legal action" against Apple for "playing politics" by not putting Grok, his company's chatbot, in its "Must Have" section in the Apple Store. "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation," Musk wrote at the time. "xAI will take immediate legal action." On Monday, Musk's companies sued both Apple and OpenAI in a U.S District Court in Texas, claiming the two tech giants engaged in an "anticompetitive scheme," per CNBC. Related: Elon Musk Warns Microsoft That Its Partner, OpenAI, Is About to Eat It Alive "Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing," the lawsuit says. "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," the complaint continues. In response to Musk's claims earlier this month, Apple told Bloomberg that the store is "designed to be fair and free of bias." In a statement to Business Insider, an OpenAI spokesperson said: "This latest filing is consistent with Mr Musk's ongoing pattern of harassment."

Elon Musk Sues OpenAI Again, This Time for ChatGPT Deal With Apple

Musk filed another lawsuit against OpenAI for creating a for-profit unit xAI, the Elon Musk-led artificial intelligence (AI) startup, filed a lawsuit against OpenAI and Apple on Monday. The legal complaint has been registered in a US federal court in Texas, and alleges the two companies of anticompetitive conduct and conspiracy to monopolise the market for smartphones and generative AI chatbots. The lawsuit comes just two weeks after Musk made several posts on his social media platform accusing Apple of artificially ranking ChatGPT high on its App Store charts. xAI Calls Apple-OpenAI Partnership Anticompetitive The 61-page lawsuit (via CNN), filed with the US District Court of Texas, names xAI and X (formerly known as Twitter) as plaintiffs and seeks a jury trial, accusing the Apple and OpenAI of having "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." xAI said in the complaint that it wants Apple to stop its anticompetitive conduct, and is seeking "billions in damages." Explaining the core allegation, the lawsuit claims that the Apple-OpenAI deal, which was announced in 2024, allows ChatGPT to be the only "generative AI chatbot with a first-party integration into Apple's smartphones." xAI claims that this arrangement acts as a deterrent for users to download and install a different AI chatbot. Bringing the loss of opportunity for other AI companies, it adds that Apple's deal ensures that other AI chatbots miss out on user prompts "they would be able to access were they given the ability to integrate with iOS like ChatGPT." Further, it alleges, "ChatGPT is advantaged even as to users who do download generative AI chatbots through the App Store because Apple's integration with ChatGPT amounts to an endorsement and award of default status." The lawsuit follows Musk's series of posts on X earlier this month, where the billionaire called out the iPhone maker for favouring ChatGPT by ranking it high in the App Store's various charts, while not mentioning Grok. He also accused Apple of mentioning OpenAI's chatbot in "every editorial section." At the time, Musk also threatened to take legal action against both companies. Notably, this is only the first time Musk has filed a lawsuit against OpenAI. In 2024, he sued the AI firm for restructuring itself to create a for-profit division in the non-profit company. A jury trial for the case is reportedly scheduled for March 2026.

Elon Musk's xAI and X sue Apple and OpenAI in Texas court over AI competition and ranking

Elon Musk's AI startup xAI and his social media company X sued Apple and OpenAI in a U.S. federal court in Texas on Monday. They accused Apple and OpenAI of working together illegally to block competition in artificial intelligence, as per reports. The lawsuit says Apple and OpenAI "locked up markets" to keep their monopolies and stop new companies like xAI from growing. The complaint adds that Apple and OpenAI worked to hold back xAI's products, like the X app and Grok chatbot, on the Apple App Store. It says Apple would have promoted them more if not for its special deal with OpenAI, as stated by Reuters. Apple and OpenAI have not given any comments yet on the lawsuit. Musk had already warned earlier this month that he would sue Apple. On X, he posted that Apple's behavior made it "impossible for any AI company besides OpenAI to reach #1 in the App Store." Apple has a partnership with OpenAI that puts ChatGPT inside iPhones, iPads, and Macs,as per reports. ALSO READ: Melania's Putin letter sparks wild conspiracy: Social media asks was Trump holding the pen? The lawsuit also says Apple ranks against "super apps" and AI chatbots like Grok, while giving OpenAI an advantage by integrating ChatGPT. The court filing says unless judges stop Apple and OpenAI's actions, competition will keep being blocked and rivals like xAI will keep getting hurt, as mentioned in the report by CNBC. Musk's company xAI bought X in March for $33 billion. He wanted to use it to improve training for AI chatbots. Musk has also connected his Grok chatbot to Tesla cars. xAI is less than two years old and competes with OpenAI, Microsoft-backed AI projects, and Chinese startup DeepSeek. Musk is also running another lawsuit in California against OpenAI and CEO Sam Altman. He wants to stop OpenAI from turning from nonprofit to for-profit. Musk and Altman had co-founded OpenAI as a nonprofit in 2015, as per Reuters. Apple's App Store has faced lawsuits before. In the "Fortnite" game maker Epic Games case, a judge ruled Apple must allow more competition in app payments. OpenAI CEO Sam Altman replied to Musk on X, calling Musk's claim "remarkable." He said Musk himself manipulates X to help his own companies and hurt rivals. An Apple spokesperson earlier said the App Store is "fair and free of bias" and already shows thousands of apps using many signals, as per the report by CNBC. Some users on X Community Notes pointed out that other chatbot apps like DeepSeek and Perplexity actually ranked No. 1 in the App Store, even after Apple and OpenAI announced their deal. This lawsuit adds another chapter in the ongoing battle between Musk and Altman, two former allies who now clash over AI. Q1. Why did Elon Musk's xAI sue Apple and OpenAI? Elon Musk's xAI sued Apple and OpenAI in a Texas court, claiming they worked together to block rivals and keep control of the AI market. Q2. What does the lawsuit say about Apple's App Store? The lawsuit says Apple gave OpenAI an unfair advantage by integrating ChatGPT while holding back xAI apps like Grok in the App Store.

Musk's xAI sues engineer for allegedly taking secrets to OpenAI - The Economic Times

Elon Musk's xAI has filed a lawsuit against a former engineer, Xuechen Li. The lawsuit alleges Li stole confidential information related to the Grok chatbot. xAI claims Li took the secrets to OpenAI after accepting a job there. The company seeks monetary damages and a restraining order.Elon Musk's artificial intelligence startup xAI has sued a former engineer at the company for allegedly stealing trade secrets related to its Grok chatbot and taking them to rival OpenAI. Musk's company said in the complaint filed on Thursday in California federal court that Xuechen Li stole confidential information related to "cutting-edge AI technologies with features superior to those offered by ChatGPT" to bring to his new job at OpenAI earlier this month. Li, representatives of OpenAI and attorneys and spokespersons for xAI did not immediately respond to requests for comment on Friday. OpenAI is not a defendant. The complaint underscores the rivalry between Musk's company and OpenAI and a fierce battle among tech companies for AI talent. Musk, an OpenAI co-founder, has separately sued the company and its CEO, Sam Altman, for allegedly deviating from its original mission to benefit humanity. OpenAI countersued Musk in April for harassment. Musk's xAI filed another lawsuit against OpenAI and Apple in Texas on Monday for allegedly monopolising the market for AI chatbots on Apple devices. The new lawsuit said Li began working as an engineer for xAI last year, where he helped train and develop Grok. The company said Li took its trade secrets in July, shortly after accepting a job from OpenAI and selling $7 million in xAI stock. Musk's startup said that the secrets could allow OpenAI to bolster ChatGPT with xAI's "more innovative AI and imaginative features." The lawsuit said Li admitted to stealing company files and "covering his tracks" during a meeting on August 14, and that the company later found additional stolen material on his devices that he had not disclosed. Musk's AI company asked the court for an unspecified amount of monetary damages and a restraining order blocking Li's move to OpenAI.

Elon Musk's xAI, X Sue Apple And OpenAI, Seek Billions In Damages, Say ChatGPT Partnership Is A 'Tale Of Two Monopolists Joining Forces' - Apple (NASDAQ:AAPL), Advanced Micro Devices (NASDAQ:AMD)

Elon Musk's artificial intelligence company xAI and social media platform X have filed a lawsuit against Apple Inc. AAPL and artificial intelligence giant OpenAI, alleging the companies favored ChatGPT over xAI's Grok and others. Thwarting Competition And Innovation, xAI Says The lawsuit, filed in a court in Texas by xAI on Monday, alleges that Apple and OpenAI have thwarted competition to protect their monopolies, in violation of "antitrust laws," court filings obtained by Reuters showed on Monday. Apple and OpenAI did not immediately respond to Benzinga's request for comments. The lawsuit also says that Apple and OpenAI's partnership is "a tale of two monopolists joining forces to ensure their continued dominance," adding that the companies have "locked up markets" to prevent "innovators" like xAI from competing. The filing shows that both companies are seeking billions of dollars in alleged damages due to the partnership, saying that "xAI and X have both been injured by this conduct." Elon Musk Weighs In On App Store Rankings Musk took to the social media platform X to express his discontent with the alleged favoritism towards OpenAI's ChatGPT. "A million reviews with 4.9 average for Grok and still Apple refuses to mention Grok on any lists," Musk said, quoting a post that showcased Grok's statistics on the App Store. Elon Musk's Massive AI Push, Unsolicited $97 Billion Takeover Bid The lawsuit comes as Musk's companies have taken significant steps in the artificial intelligence race, with xAI investing over $40 billion in the company's Memphis data center that houses the Colossus 1 Supercomputer. Over 208 Tesla Inc. TSLA Megapacks also power the data center, which has been under scrutiny by rights groups and advocates due to environmental concerns. Musk had also reportedly enlisted help from Meta Platforms Inc. META CEO Mark Zuckerberg for an unsolicited $97 billion OpenAI takeover bid, OpenAI suggests and has asked a court to compel Meta to release documents tied to the matter. Grok And DeepSeek Offered On Tesla Vehicles Meanwhile, Tesla vehicles in the U.S. offer Grok integration in all models with an Advanced Micro Devices Inc. AMD chipset, marking another collaboration between Musk's companies. However, to stay competitive in China, a crucial market for Tesla, the EV giant offers the AI model DeepSeek and TikTok parent ByteDance's Douban AI model on its vehicles in the country. Apple's OpenAI Integration, Tesla Scraps Dojo Apple had previously announced a partnership with OpenAI to offer ChatGPT integration on devices like the iPhone, the Mac line of computers and the iPad. Elsewhere, Tesla has pulled the plug on developing an in-house AI chipset as the company scrapped its Dojo program, signing a $16.5 billion deal with Samsung Electronics SSNLF to develop AI6 self-driving chips. Check out more of Benzinga's Future Of Mobility coverage by following this link. Read Next: Tesla Insiders Have Unloaded More Than 50% Equity In Elon Musk's EV Giant Over The Last Year: Report Photo courtesy: Shutterstock AAPLApple Inc$227.07-0.30%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum34.17Growth30.03Quality71.48Value8.71Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$163.10-2.78%METAMeta Platforms Inc$752.50-0.30%SSNLFSamsung Electronics Co Ltd$42.480.34%TSLATesla Inc$345.101.50%Market News and Data brought to you by Benzinga APIs

Elon Musk's xAI Is Taking Apple & OpenAI To Court, Claims Both Are Conspiring To Keep Competition, Including The Grok App, At Bay

Seeing OpenAI's ChatGPT app on the top of Apple App Store's rankings likely infuriated Elon Musk, forcing him to file a lawsuit against the two companies through his own artificial intelligence firm, xAI, in a U.S. federal court in Texas. The lawsuit claims that both Apple and OpenAI are illegally conspiring to prevent competition such as xAI from gaining any traction. Musk previously accused Apple of giving unfair preference to OpenAI's ChatGPT app on the App Store, and vowed to take legal action against such activity, and it appears that he kept his word. Lawsuit mentions that Apple has an 'exclusive deal with OpenAI' on its App Store, otherwise it would not have any reason to prevent competition from picking up in the rankings Whether or not the lawsuit is termed baseless by the media, its details spotted by Reuters state that Apple and OpenAI have 'locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.' The report also suggests that Apple and OpenAI have some form of a clandestine partnership, which prevents competitors such as xAI's Grok from taking the top spot in the App Store's rankings. Because of this unfair treatment, Musk is seeking billions of dollars in alleged damages. OpenAI did not back down and immediately responded to xAI's lawsuit, with a company spokesperson saying that 'this latest filing is consistent with Mr. Musk's ongoing pattern of harassment.' Sam Altman, OpenAI's CEO, had previously called out the Tesla CEO's hypocritical statement by saying that he designed a system on X where the micro-blogging social network is manipulated for Musk's benefit, monetary, or otherwise. Apple has yet to comment on the latest development, but it is no stranger to lawsuits that target its App Store policies and how it takes an anti-competitive approach with its platform. The Cupertino firm and Epic Games have been locked in an ongoing case for years, where Fortnite was removed from the App Store, but a judge later ordered the iPhone maker to allow the competition for third-party app payment options.

Musk sues Apple and OpenAI, saying they hurt AI competition

Elon Musk has accused Apple and OpenAI in a lawsuit of unfairly favoring the artificial intelligence company across iPhones and thwarting competition for other chatbot makers. Musk's X and xAI seek billions of dollars in damages in the suit filed Monday in U.S. federal court in Fort Worth, Texas, arguing that Apple's decision to integrate OpenAI into the iPhone's operating system inhibits rivalry and innovation within the AI industry and harms consumers by depriving them of choice. The billionaire founder of xAI, which now houses the Grok AI team and X social network, said Apple makes it impossible for anyone other than OpenAI's ChatGPT to reach the top of the App Store charts, a sought-after global spotlight for app developers.

Elon Musk Sues Apple and OpenAI for Allegedly Favoring ChatGPT

Elon Musk is seeking billions of dollars in damages and urging the court to block this anticompetitive partnership. Elon Musk's xAI firm has filed an antitrust lawsuit against Apple and OpenAI in Texas. Musk-led xAI has accused Apple and OpenAI are collaborating to stifle competition in the AI industry. The lawsuit further says that both Apple and the ChatGPT maker, OpenAI, are engaging in monopolistic practices by deeply integrating ChatGPT into Apple's iPhones. This gives undue advantage to ChatGPT in the market, overshadowing apps like xAI's Grok. The lawsuit mentions that Apple and OpenAI have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." In addition, the lawsuit argues that Apple excludes xAI's Grok from App Store's featured sections such as "Must-Have Apps." The lawsuit alleges, "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." Musk also wrote on X, "A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists." Just recently, Musk accused Apple of favoring OpenAI and called for immediate legal action. Now, with this lawsuit, Musk is seeking billions of dollars in damages and urging the court to stop this anticompetitive partnership. Responding to the lawsuit, an OpenAI spokesperson said, "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment." On the other hand, Apple has not yet responded, but previously the Cupertino giant said that "the App Store is designed to be fair and free of bias."

Elon Musk's xAI Hits Ex-Employee With Lawsuit Claiming Trade Secrets Ended Up At OpenAI

Elon Musk's xAI has initiated legal proceedings against a former engineer. The firm alleges that the engineer stole trade secrets and subsequently took them to rival firm OpenAI. As per a report by Reuters, xAI lodged the lawsuit in a federal court in California last Thursday. The company accuses Xuechen Li, a former employee, of pilfering confidential information pertaining to its Grok chatbot and taking it to his new position at OpenAI earlier this month. The lawsuit underscores the ongoing rivalry between Musk's xAI and OpenAI, and the fierce competition in the tech industry for AI talent. Notably, OpenAI is not listed as a defendant in the lawsuit. xAI alleges that Li, who joined the company as an engineer last year, took its trade secrets in July, shortly after accepting a job offer from OpenAI and selling $7 million worth of xAI stock. Also Read: Here's How Sam Altman Quietly Replaced Elon Musk as Donald Trump's Go-To AI Advisor The lawsuit suggests that the stolen secrets could potentially enable OpenAI to upgrade its ChatGPT with xAI's "more innovative AI and imaginative features." The lawsuit further mentions that Li confessed to stealing company files and "covering his tracks" during a meeting on August 14. xAI is seeking an unspecified amount in damages and a restraining order to prevent Li's transition to OpenAI. This lawsuit is significant as it brings to light the intense competition and rivalry in the AI industry. The alleged theft of trade secrets could potentially give OpenAI an unfair advantage, thereby disrupting the balance in this highly competitive field. Furthermore, the case could set a precedent for how such disputes are handled in the future, potentially impacting the movement of talent between rival tech companies. Read Next Elon Musk And Sam Altman Just Agreed On One Thing -- And No, It's Not A Business Deal Market News and Data brought to you by Benzinga APIs

Elon Musk's xAI Files Antitrust Lawsuit Against Apple and OpenAI | PYMNTS.com

The Musk-owned companies' complaint said, according to the report: "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." An OpenAI spokesperson told CNBC, per the report: "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment." OpenAI is suing Musk for allegedly harassing the company in public remarks, social media posts, legal actions and a "sham bid" to acquire its assets. Apple did not immediately respond to CNBC's request for comment on the Musk companies' lawsuit, per the report, and did not respond to PYMNTS' request for comment. According to the CNBC report, an Apple spokesperson said earlier that the company's App Store is designed to be "fair and free of bias." The Wall Street Journal also reported on the lawsuit Monday, saying that the complaint focuses on Apple's role as a delivery mechanism for AI models and appears to be modeled on the Department of Justice's antitrust case against Google. In that case, a judge found that Google's control of distribution through Apple's iPhones contributed to its illegal monopoly in the search results market, according to the report. Musk threatened in August to sue Apple over the way the company ranks AI firms in its App Store, saying in an Aug. 11 post on social platform X: "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation." In an earlier post on the same day, Musk wrote: "Hey @Apple App Store, why do you refuse to put either X or Grok in your 'Must Have' section when X is the #1 news app in the world... Are you playing politics? What gives?"

Elon Musk sues Apple over ChatGPT monopoly and App Store bias

Elon Musk's companies, X Corp. and xAI, have filed suit against Apple and OpenAI, alleging that their strategic alliance unlawfully consolidates influence over both generative AI development and smartphone distribution channels. The lawsuit, filed on August 25, 2025, in the U.S. District Court for the Northern District of Texas, alleges that Apple and OpenAI have engaged in anticompetitive behavior that suppresses innovation, restricts consumer choice, and unfairly advantages ChatGPT over rival platforms like Grok and X. The lawsuit, titled X Corp. and X.AI LLC v. Apple Inc. et al., centers on a series of allegations that Apple and OpenAI have formed a secretive, exclusive partnership that unfairly tilts the AI market in favor of ChatGPT. The plaintiffs are seeking billions of dollars in damages and structural remedies to restore competition. Exclusive Integration: Apple, described as a "monopolist in the U.S. smartphone market" with a 65% share, has allegedly made ChatGPT the only generative AI chatbot integrated into iPhones via Apple Intelligence. Users activating Apple Intelligence are not offered alternatives, effectively locking out competitors like Grok. Monopoly on User Data: The deal allegedly gives ChatGPT privileged access to "billions of user prompts originating from hundreds of millions of iPhones," which the plaintiffs argue provides OpenAI with a significant advantage in training its models and reinforcing its dominance. App Store Bias: The lawsuit claims Apple manipulates App Store rankings and editorial features to suppress rival apps. On August 24, 2025, ChatGPT was the only generative AI chatbot featured in the App Store's "Must-Have Apps" section, while Grok and X -- despite ranking #2 in Productivity and #1 in News, respectively -- were excluded. Suppressed Competition: The plaintiffs argue that Apple and OpenAI's actions have harmed competition in both the generative AI and smartphone markets, reducing "customer choice, competition, and marketwide innovation and investment." The complaint includes specific metrics to illustrate the scale of the alleged monopoly and its impact: Musk and xAI publicly criticized Apple's practices in posts made on X. Musk wrote: A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists xAI added: Thanks for highlighting those impressive numbers -- 1M reviews at 4.9 stars along-side 50M+ downloads is incredible validation from users. We're on the top free apps chart at , but curated features could boost visibility more. Onward to maximizing truth-seeking AI! These posts reflect growing frustration over Apple's editorial decisions and perceived bias in app promotion. This lawsuit follows Musk's earlier accusations, made on August 12, 2025, that Apple was "playing politics" by favoring OpenAI in App Store rankings. Apple responded by stating that its App Store is "fair and free of bias," with curated lists selected by experts using objective criteria. The case also builds on Musk's long-standing feud with OpenAI CEO Sam Altman, dating back to their split after co-founding the company in 2015. Altman responded to Musk's latest claims by criticizing Musk's management of the X platform, while OpenAI maintained its focus on product development. The plaintiffs are requesting: This lawsuit adds to the growing legal scrutiny of Apple's market practices, echoing themes from the Epic Games litigation and the U.S. Department of Justice's antitrust suit against Apple. If successful, the case could reshape how AI platforms are distributed and promoted within closed ecosystems, potentially opening the door for broader competition in consumer AI.

Explained: Why Has Elon Musk's xAI Sued OpenAI And Apple?

Elon Musk’s AI startup xAI has filed a lawsuit against Apple and OpenAI, accusing them of entering into an unlawful agreement to monopolise the generative AI market by integrating OpenAI’s ChatGPT directly into Apple products. The case was filed on August 25 in the US District Court for the Northern District of Texas, Fort Worth division. Musk's xAI argues that Apple and OpenAI used their partnership to prevent competing AI applications, like xAI’s Grok chatbot, from achieving prominence. Consequently, the lawsuit seeks monetary damages and aims to halt the alleged anticompetitive behaviour. However, an OpenAI spokesperson described the action as consistent with Musk’s “ongoing pattern of harassmentâ€, while speaking to Reuters. And, Apple notably did not issue an immediate comment on the case.  X (formerly Twitter) and xAI allege Apple and OpenAI entered into an "unlawful agreement" to maintain their respective monopolies in the smartphone and generative AI chatbot markets. The court order's introduction says that defendants have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing". And xAI's complaint asserts that such an action prevents fair competition. The core of the plaintiff's claims centres on a June 2024 deal when Apple integrated OpenAI's ChatGPT into its iPhone operating system (iOS). The lawsuit states that this "exclusive arrangement has made ChatGPT the only generative AI chatbot integrated into the iPhone". And this deal allegedly provides OpenAI with a major advantage, as ChatGPT is the "only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones". Additionally, the lawsuit characterises this as a "moat" designed to protect OpenAI's dominant market position. For context, the Apple-OpenAI arrangement denies AI chatbot rivals, including xAI's Grok, the scale needed for innovation, stating that "xAI’s Grok is foreclosed from the ability to compete for additional customers against OpenAI’s ChatGPT". Musk's xAI further alleges that there are no pro-competitive justifications for the defendants’ unlawful agreement. The xAI lawsuit also alleges that Apple uses its App Store to protect its monopoly. Musk's AI company claims that Apple has deprioritised "the apps of competing generative AI chatbots and super apps in its App Store rankings", and it has stretched out its App Store app review processes for these competitors. Furthermore, the lawsuit says that Apple's conduct has harmed Musk's AI company by "reducing Grok's ability to scale and introduce new features". Musk's xAI seeks a permanent injunction, which will effectively put an end to the "unlawful agreement" and the App Store's anticompetitive practices, as well as monetary damages. On August 12, Musk publicly accused Apple of favouring OpenAI, prompting Altman to retort online. Musk wrote on X: "Hey @Apple App Store, why do you refuse to put either X or Grok in your 'Must Have' section when X is the #1 news app in the world and Grok is #5 among all apps? Are you playing politics?" He added in another tweet on the same day. “Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation. xAI will take immediate legal actionâ€. However, Altman responded by saying: “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.†He further added that he would apologise if Musk signed an affidavit stating that he has never directed changes to X’s algorithm to benefit his own companies or hurt competitors. Musk and Altman co-founded OpenAI in December 2015 as a nonprofit focused on developing artificial general intelligence (AGI) for humanity’s benefit. Musk pledged substantial funding, though OpenAI later clarified that his contributions totalled less than $45 million. In February 2018, Musk stepped down from the board amid discussions about shifting to a for-profit structure. In July 2023, Musk launched xAI, his own artificial intelligence company. Since then, he has repeatedly clashed with OpenAI and Altman, the latest iteration of which is the current lawsuit against both Apple and OpenAI. Musk filed a lawsuit against OpenAI in early 2024, wherein he accused the company of abandoning its non-profit mission. He also criticised its partnership with Microsoft. However, he withdrew the case in June 2024, before filing a similar suit in August 2024 that alleged OpenAI of fraud, breach of contract, and false advertising. Furthermore, in early 2025, Musk attempted a roughly $97 billion bid to acquire OpenAI, but the AI company rejected it, calling the attempt “ridiculousâ€. The lawsuit underscores the fight over who controls access to AI. By accusing Apple and OpenAI of forming an exclusive partnership, xAI directly challenges the way dominant technology companies integrate AI into consumers' devices. The case could force regulators and courts to examine whether one or two companies should decide how hundreds of millions of people use generative AI tools. Musk’s action also continues his conflict with OpenAI, which he co-founded in 2015 and later left. He has since accused the company of straying from its nonprofit mission and filed lawsuits to press that point. By adding Apple to the dispute, he has expanded the argument to include how exclusive agreements with smartphone-manufacturing companies shape competition. This case could set a precedent for how companies integrate AI assistants into phones, how app stores rank or suppress rivals, and how antitrust law applies to emerging technologies. If the court limits Apple and OpenAI’s arrangement, other AI developers may gain a fairer chance to compete. If it does not, the two companies may strengthen their control over a technology that is rapidly becoming central to work, communication, and digital life.

Elon Musk's xAI sues Apple and OpenAI over AI competition, App Store rankings

Billionaire entrepreneur Elon Musk's artificial intelligence startup xAI sued Apple and ChatGPT maker OpenAI in U.S. federal court in Texas on Monday, accusing them of illegally conspiring to thwart competition for artificial intelligence. Apple and OpenAI have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing," the lawsuit said. The complaint said Apple and OpenAI conspired to suppress xAI's products, including on the Apple App Store. "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 said. Apple and OpenAI did not immediately respond to requests for comment. Earlier this month, Musk threatened to sue Cupertino, California-based Apple, saying in a post 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." Apple's partnership with OpenAI has integrated its AI platform ChatGPT into iPhones, iPads and Macs. Musk's xAI acquired X in March for US$33 billion to enhance its chatbot training capabilities. Musk also has integrated the Grok chatbot into vehicles made by his electric automobile company Tesla. Musk's xAI was launched less than two years ago and competes with Microsoft-backed OpenAI as well as with Chinese startup DeepSeek. Musk is separately suing OpenAI and its chief executive Sam Altman in federal court in California to stop its conversion from a nonprofit to a for-profit business. Musk cofounded OpenAI with Altman in 2015 as a nonprofit. Apple's App Store practices have been the focus of multiple lawsuits. In one ongoing case by "Fortnite" video game maker Epic Games, a judge ordered Apple to allow greater competition for app payment options.

Elon Musk Sues Apple and OpenAI Over App Store Bias Claims

Elon Musk Lawsuit Targets Apple ChatGPT Integration, Grok AI Chatbot Gains Spotlight Elon Musk's companies X and xAI have filed a lawsuit against Apple and OpenAI in a federal court in Fort Worth, Texas. It has been alleged that Apple gives OpenAI an unfair advantage by integrating ChatGPT into iPhones. Musk also claims that this partnership is limiting competition and innovation in the AI industry. The now demands billions in damages and an injunction that would cease this so-called "illegal arrangement", as claimed by Musk.

Elon Musk sues Apple, Sam Altman's OpenAI for allegedly colluding to...

Billionaire Elon Musk filed a bombshell lawsuit against Apple and Sam Altman's OpenAI on Monday, accusing the two tech giants of illegally colluding to stifle xAI and other artificial intelligence rivals. Filed in Texas federal court, the antitrust lawsuit came just weeks after Musk publicly threatened legal action over Apple's alleged refusal to feature either the X app or Grok, the artificial intelligence chatbot offered by xAI, within the top rankings of its App Store. "Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing," the lawsuit alleges. Musk's attorneys said the lawsuit is intended to "stop Defendants from perpetrating their anticompetitive scheme and to recover billions in damages" related to their alleged conduct." The lawsuit noted that Apple reached terms last year to integrate OpenAI's ChatGPT into its iPhones. Musk alleged that the partnership prevented customers from easily accessing other chatbots due to the two companies' respective dominance over smartphones and AI. "Customers in the smartphone market are harmed by this conduct because they cannot readily switch to less expensive smartphones and use generative AI chatbots and super apps that match or replace the features offered by the iPhone," the lawsuit says. "Absent Defendants' misconduct, consumers would be able to pay less for smartphones and achieve the same or higher quality," it adds. In a terse emailed statement to The Post, an OpenAI spokesman said, "This latest filing is consistent with Mr Musk's ongoing pattern of harassment." Representatives for xAI and Apple did not immediately return requests for further comment. Musk first implied last month that Apple was suppressing his apps at the behest of OpenAI - who Musk is already suing in separate proceedings for allegedly abandoning its charitable mission while pursuing a for-profit restructuring. "Hey @Apple App Store, why do you refuse to put either X or Grok in your 'Must Have' section when X is the #1 news app in the world and Grok is #5 among all apps?" Musk wrote in an X post on Aug. 12. "Are you playing politics? What gives? Inquiring minds want to know." In another post, Musk alleged at the time that Apple was "behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store."

Musk's xAI sues engineer for allegedly taking secrets to OpenAI

Elon Musk's artificial intelligence startup xAI has sued a former engineer at the company for allegedly stealing trade secrets related to its Grok chatbot and taking them to rival OpenAI. Musk's company said in the complaint filed on Thursday in California federal court that Xuechen Li stole confidential information related to "cutting-edge AI technologies with features superior to those offered by ChatGPT" to bring to his new job at OpenAI earlier this month. Li, representatives of OpenAI and attorneys and spokespersons for xAI did not immediately respond to requests for comment on Friday. OpenAI is not a defendant. The complaint underscores the rivalry between Musk's company and OpenAI and a fierce battle among tech companies for AI talent. Musk, an OpenAI co-founder, has separately sued the company and its CEO, Sam Altman, for allegedly deviating from its original mission to benefit humanity. OpenAI countersued Musk in April for harassment. Musk's xAI filed another lawsuit against OpenAI and Apple AAPL.O in Texas on Monday for allegedly monopolizing the market for AI chatbots on Apple devices. The new lawsuit said Li began working as an engineer for xAI last year, where he helped train and develop Grok. The company said Li took its trade secrets in July, shortly after accepting a job from OpenAI and selling US$7 million in xAI stock. Musk's startup said that the secrets could allow OpenAI to bolster ChatGPT with xAI's "more innovative AI and imaginative features." The lawsuit said Li admitted to stealing company files and "covering his tracks" during a meeting on Aug. 14, and that the company later found additional stolen material on his devices that he had not disclosed. Musk's AI company asked the court for an unspecified amount of monetary damages and a restraining order blocking Li's move to OpenAI.

Elon Musk accuses Apple and OpenAI of stifling AI competition in lawsuit | BreakingNews.ie

Elon Musk has targeted Apple and OpenAI in a lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence (AI). The 61-page complaint filed in a Texas federal court follows a threat Mr Musk made two weeks ago when he accused Apple of unfairly favouring OpenAI and ChatGPT in the iPhone's app store rankings for top AI apps. Mr Musk's post insinuated that Apple had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit - filed by xAI and another of his corporate entities, X Corp - in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barrelled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between Apple and OpenAI as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays Apple as a company that views AI as an "existential threat" to its future success, prompting it to collude with OpenAI in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing Apple of trying to shield the iPhone from do-everything "super apps", such as the one Mr Musk has long been trying to create with X, echo a competition lawsuit filed against Apple last year by the US Department of Justice. The complaint casts OpenAI as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another US federal lawsuit that Mr Musk filed last year, alleging OpenAI had betrayed its founding mission to serve as a non-profit research lab for the public good. OpenAI has countered with a lawsuit against Mr Musk accusing him of harassment - an allegation that the company cited in its response to Monday's lawsuit. "This latest filing is consistent with Mr Musk's ongoing pattern of harassment," OpenAI said in a statement. The crux of the lawsuit revolves around Apple's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device could not satisfy user needs. The partnership announced last year was part of Apple's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still has not been able to deliver on all its promises. Apple's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing OpenAI with invaluable data that's unavailable to Grok and other would-be competitors because it is currently an exclusive partnership. The alliance has provided Apple with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeepSeek and Perplexity have periodically reached the top spot in the Apple app store's AI rankings in at least some parts of the world since Apple announced its deal with ChatGPT. The lawsuit does not mention the potential threat that ChatGPT could also pose to Apple and the iPhone's future popularity. As part of its expansion efforts, OpenAI recruited former Apple designer Jony Ive to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone.

Elon Musk's xAI sues Apple and OpenAI over AI competition, App Store rankings

(Reuters) -Billionaire entrepreneur Elon Musk's artificial intelligence startup xAI sued Apple and ChatGPT maker OpenAI in U.S. federal court in Texas on Monday, accusing them of illegally conspiring to thwart competition for artificial intelligence. Apple and OpenAI have "locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing," the lawsuit said. The complaint said Apple and OpenAI conspired to suppress xAI's products, including on the Apple App Store. "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 said. Apple and OpenAI did not immediately respond to requests for comment. Earlier this month, Musk threatened to sue Cupertino, California-based Apple, saying in a post 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." Apple's partnership with OpenAI has integrated its AI platform ChatGPT into iPhones, iPads and Macs. Musk's xAI acquired X in March for $33 billion to enhance its chatbot training capabilities. Musk also has integrated the Grok chatbot into vehicles made by his electric automobile company Tesla. Musk's xAI was launched less than two years ago and competes with Microsoft-backed OpenAI as well as with Chinese startup DeepSeek. Musk is separately suing OpenAI and its chief executive Sam Altman in federal court in California to stop its conversion from a nonprofit to a for-profit business. Musk cofounded OpenAI with Altman in 2015 as a nonprofit. Apple's App Store practices have been the focus of multiple lawsuits. In one ongoing case by "Fortnite" video game maker Epic Games, a judge ordered Apple to allow greater competition for app payment options. (Reporting by Mike Scarcella; Editing by David Bario and David Gregorio)

Elon Musk accuses of Apple and OpenAI of stifling AI competition in antitrust lawsuit

on Monday targeted and in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence. The 61-page complaint filed in federal court follows through on a threat that Musk made two weeks ago when he accused of unfairly favoring and ChatGPT in the iPhone's app store rankings for top AI apps. Musk's post insinuated that had rigged the system against ChatGPT competitors such as the Grok chatbot made by his own xAI. Now, he is detailing a litany of grievances in the lawsuit -- filed by xAI and another of his corporate entities, -- in an attempt to win monetary damages and a court order prohibiting the alleged illegal tactics. The double-barreled legal attack weaves together several recently unfolding narratives to recast a year-old partnership between and as a veiled conspiracy to stifle competition during a technological shift that could prove as revolutionary as the 2007 release of the iPhone. "This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence," the lawsuit asserts. The complaint portrays as a company that views AI as an "existential threat" to its future success, prompting it to collude with in an attempt to protect the iPhone franchise that has long been its biggest moneymaker. Some of the allegations accusing of trying to shield the iPhone from do-everything "super apps," such as the one Musk has long been trying to create with X, echo an antitrust lawsuit filed against last year by the . The complaint casts as a threat to humanity bent on putting profits before public safety as it tries to build on its phenomenal growth since the late 2022 release of ChatGPT. The depiction mirrors one already being drawn in another federal lawsuit that Musk filed last year, alleging had betrayed its founding mission to serve as a nonprofit research lab for the public good. has countered with a lawsuit against Musk accusing him of harassment -- an allegation that the company cited in its response to Monday's antitrust lawsuit. "This latest filing is consistent with Mr. Musk's ongoing pattern of harassment," said in a statement. didn't immediately respond to a request for comment. The crux of the lawsuit revolves around 's decision to use ChatGPT as an AI-powered "answer engine" on the iPhone when the built-in technology on its device couldn't satisfy user needs. The partnership announced last year was part of 's late entry into the AI race that was supposed to be powered mostly by its own on-device technology, but the company still hasn't been able to deliver on all its promises. 's own AI shortcomings may be helping drive more usage of ChatGPT on the iPhone, providing with invaluable data that's unavailable to Grok and other would-be competitors because it's currently an exclusive partnership. The alliance has provided with an incentive to improperly elevate ChatGPT in the AI rankings of the iPhone's app store, the lawsuit alleges. Other AI apps from DeekSeek and Perplexity have periodically reached the top spot in the app store's AI rankings in at least some parts of the world since announced its deal with ChatGPT. The lawsuit doesn't mention the potential threat that ChatGPT could also pose to and the iPhone's future popularity. As part of its expansion efforts, recruited former designer to oversee a project aimed at building an AI-powered device that many analysts believe could eventually mount a challenge to the iPhone. Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission. , source

Musk's xAI sues engineer for allegedly taking secrets to OpenAI

(Reuters) -Elon Musk's artificial intelligence startup xAI has sued a former engineer at the company for allegedly stealing trade secrets related to its Grok chatbot and taking them to rival OpenAI. Musk's company said in the complaint filed on Thursday in California federal court that Xuechen Li stole confidential information related to "cutting-edge AI technologies with features superior to those offered by ChatGPT" to bring to his new job at OpenAI earlier this month. Li, representatives of OpenAI and attorneys and spokespersons for xAI did not immediately respond to requests for comment on Friday. OpenAI is not a defendant. The complaint underscores the rivalry between Musk's company and OpenAI and a fierce battle among tech companies for AI talent. Musk, an OpenAI co-founder, has separately sued the company and its CEO, Sam Altman, for allegedly deviating from its original mission to benefit humanity. OpenAI countersued Musk in April for harassment. Musk's xAI filed another lawsuit against OpenAI and Apple in Texas on Monday for allegedly monopolizing the market for AI chatbots on Apple devices. The new lawsuit said Li began working as an engineer for xAI last year, where he helped train and develop Grok. The company said Li took its trade secrets in July, shortly after accepting a job from OpenAI and selling $7 million in xAI stock. Musk's startup said that the secrets could allow OpenAI to bolster ChatGPT with xAI's "more innovative AI and imaginative features." The lawsuit said Li admitted to stealing company files and "covering his tracks" during a meeting on August 14, and that the company later found additional stolen material on his devices that he had not disclosed. Musk's AI company asked the court for an unspecified amount of monetary damages and a restraining order blocking Li's move to OpenAI. (Reporting by Blake Brittain in WashingtonEditing by Matthew Lewis)

Elon Musk files lawsuit against Apple and OpenAI for anti-competitive practices

Elon Musk has announced that his artificial intelligence start-up, xAI, is taking legal action against Apple and OpenAI in a Texas federal court. The billionaire accuses the companies of entering into an illegal agreement to lock up the AI market and prevent competitors from emerging. Amongst other things, the complaint alleges an agreement to limit the visibility of xAI's products on the App Store, to the benefit of OpenAI and its integration into Apple devices. The partnership between Apple and OpenAI has made it possible to install ChatGPT directly on iPhones, iPads, and Macs, which Musk considers a major barrier to his own solutions. In early August, he already denounced Apple's practices on his X platform, which he considered discriminatory. To support the growth of xAI, Musk has invested heavily: he bought X for $33bn to strengthen the training of its chatbots and integrated its Grok AI into Tesla vehicles. This legal offensive is part of a broader strategy. In California, Musk is also suing OpenAI and its CEO Sam Altman to challenge the transformation of the non-profit organization he co-founded in 2015 into a commercial company. The litigation is also part of a broader climate of tension surrounding the practices of the App Store, which has already been targeted in other cases, notably Apple's dispute with Epic Games over integrated payment systems.

Elon Musk's xAI sues Apple, OpenAI over competition claims

STORY: Elon Musk's xAI is suing Apple and OpenAI over claims they conspired to thwart rivals on artificial intelligence. The suit was filed in a Texas court on Monday (August 26). It says the pair "locked up markets to maintain their monopolies" after Apple integrated OpenAI's ChatGPT into its products. The suit says the partnership led the iPhone maker to promote ChatGPT in its app store, while limiting prominence for Musk's competing chatbot Grok. In a social media post, Musk said "a million reviews with 4.9 average for Grok and still Apple refuses to mention Grok on any lists". Apple didn't respond to a request for comment on the suit. While OpenAI said the case was consistent with what it called Musk's "ongoing pattern of harassment". Some legal experts said Apple's dominant position in the smartphone market could bolster xAI's allegation that it was suppressing competition. But Ohio State University law professor Amy Schmitz cast doubt on some of Musk's claims: "The fact remains that Grok is in the app store and it has ranked highly in some months. In fact, one report I looked at had it ranked at, I think, number one on the App Store in February of 2025, which shows that there is competition, right?" Musk cofounded OpenAI with Sam Altman in 2015. Its ChatGPT bot would later become the fastest-growing consumer application in history. But the pair fell out, and Musk went on to found the rival xAI. In a separate case, he's suing the ChatGPT maker over its plan to convert from a nonprofit to a for-profit entity.

Elon Musk sues Apple and OpenAI, alleges iPhone-ChatGPT deal crushes AI competition

The issue lies in how Apple has integrated ChatGPT into iPhones through its Apple Intelligence system. Elon Musk has officially taken legal action against Apple and OpenAI, accusing the two companies of unfairly blocking competition in the fast-growing AI industry. In a lawsuit, Musk's companies X Corp. and xAI claimed that Apple's partnership with OpenAI gives ChatGPT an unfair edge over other AI apps. The issue lies in how Apple has integrated ChatGPT into iPhones through its Apple Intelligence system. Musk's companies argue that this setup leaves users with "no reason" to download rival AI apps, as Apple "force[s]" iPhone owners to use ChatGPT by default once they turn on Apple Intelligence. The lawsuit states, "Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing." Musk has been vocal about his criticism of Apple's close ties with OpenAI. Earlier this month, he warned of legal action, accusing Apple of manipulating App Store rankings in favour of OpenAI. "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation," he said at the time. Also read: Apple sues ex-employee for allegedly leaking Apple Watch secrets to Oppo The lawsuit also points to Apple's "Must-Have Apps" section in the App Store. It claims that even though X and its AI chatbot Grok achieved strong rankings, neither appeared in this curated section. Instead, as of August 24, 2025, ChatGPT was allegedly the "only" AI chatbot featured there. The lawsuit also argues that by giving ChatGPT direct integration into iPhones, Apple provides OpenAI with access to "potentially billions of user prompts originating from hundreds of millions of iPhones," which gives OpenAI an unfair advantage. Also read: Apple's first foldable phone may arrive in 2026: Four cameras, C2 modem and other expected specs OpenAI, however, has dismissed the lawsuit. "This latest filing is consistent with Mr Musk's ongoing pattern of harassment," OpenAI spokesperson Kayla Wood told The Verge. Meanwhile, Apple previously defended its App Store policies, telling Bloomberg that its store is "designed to be fair and free of bias."