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Musk’s xAI was launched less than two years ago and competes with Microsoft-backed OpenAI as well as with Chinese startup DeepSeek. File.
| Photo Credit: 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.
Apple’s partnership with OpenAI has integrated its AI platform ChatGPT into iPhones, iPads, and Macs.
“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,” the lawsuit said.
In the lawsuit, xAI said it is seeking billions of dollars in alleged damages.
“This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” an OpenAI spokesperson said in a statement.
Apple did not immediately respond to a request for comment. Mr. Musk had threatened to sue Cupertino, California-based Apple earlier this month, 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.” OpenAI’s ChatGPT became the fastest-growing consumer application in history in the months following its launch in late 2022. Mr. Musk’s xAI acquired X in March for $33 billion to enhance its chatbot training capabilities. Musk has also integrated the Grok chatbot into vehicles made by his electric automobile company Tesla.
Mr. Musk’s xAI was launched less than two years ago and competes with Microsoft-backed OpenAI as well as with Chinese startup DeepSeek. Mr. Musk is separately suing OpenAI and its CEO Sam Altman in federal court in California to stop its conversion from a nonprofit to a for-profit business. Mr. 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, David Gregorio, Rod Nickel)
Published – August 25, 2025 10:30 pm IST
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