Elon Musk Sues Apple, OpenAI Over Antitrust Allegations

Aug 26, 2025, 1:36 AM

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Elon Musk's artificial intelligence startup xAI filed a lawsuit against Apple and OpenAI on Monday, accusing them of anticompetitive behavior through their partnership to integrate ChatGPT into iOS. The case alleges that the collaboration "locked up markets" to maintain monopolies in smartphones and generative AI chatbots, framing it as a conspiracy between two "monopolists".

Antitrust Allegations.

The lawsuit, filed in Texas federal court, claims Apple and OpenAI violated Section 1 and Section 2 of the Sherman Act by colluding to prioritize ChatGPT over competitors like xAI's Grok. Musk's companies argue that Apple's 65% smartphone market share and OpenAI's 80% AI chatbot dominance create an unfair advantage, forcing users into exclusive partnerships. "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," the complaint states.

Partnership Details.

Apple's integration of ChatGPT into iOS was announced last year as part of its late entry into the AI race. The lawsuit alleges that Apple improperly elevated ChatGPT in app store rankings, excluding competitors like Grok and Perplexity . While Apple's operating system allows access to other chatbots via web browsers, the plaintiffs claim these alternatives lack the usability and integration of first-party apps.

Legal and Business Context.

The case echoes previous antitrust lawsuits against Apple, including one from the US Department of Justice over alleged anti-competitive practices in app store rankings. OpenAI is also accused of prioritizing profits over public safety, a claim mirroring Musk's past allegations that the company abandoned its nonprofit mission. OpenAI responded by calling Musk's lawsuit "harassment," while Apple has not yet commented on the claims.

Broader Tech Feud.

The lawsuit is part of an ongoing feud between Musk and OpenAI founder Sam Altman, who co-founded the company in 2015 before splitting over business strategies. Musk left OpenAI in 2018 after disputing its shift to a for-profit model, later filing multiple lawsuits against the firm. The current case also highlights tensions as OpenAI explores partnerships with former Apple designer Jony Ive on an AI hardware project, which analysts believe could challenge the iPhone's dominance.

Market Implications.

Musk's lawsuit seeks damages and a court order to block the alleged anticompetitive tactics, claiming they harm consumers through reduced innovation and higher prices. The complaint emphasizes that Apple's AI shortcomings have driven increased ChatGPT usage on iPhones, providing OpenAI with data unavailable to competitors like Grok. However, the case does not address potential threats ChatGPT itself poses to Apple's market position, as OpenAI continues to expand its influence in the tech sector.

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