Elon Musk’s xAI Sues Apple & OpenAI Over AI Monopoly, App Store Bias: All You Need To Know

Musk’s xAI sues Apple & OpenAI, claiming they block rivals like Grok in the App Store. Lawsuit seeks billions in damages.

By : Annie Sharma | Updated at : 26 Aug 2025 01:22 PM (IST)

elon musk xai lawsuit apple openai ai monopoly grok Elon Musk’s xAI Sues Apple & OpenAI Over AI Monopoly, App Store Bias: All You Need To Know

Though OpenAI has denied all of Musk’s arguments but the fire seems not to be put off soon.

Source : PTI

Elon Musk’s aAI startup xAI is now in a legal battle with Apple and OpenAI, accusing them of planning to block competition in the artificial intelligence market. The case is filed in a Texas federal court claiming that Apple’s exclusive partnership with OpenAI prevents apps like Musk’s Grok from getting visibility in the App Store despite strong user reviews.

xAI is demanding billions of dollars in damages. Though OpenAI has denied all of Musk’s arguments but the fire seems not to be put off soon.

Why Musk Is Suing Apple & OpenAI

Musk introduced xAI around two years back and has integrated the Grok chatbot into Tesla vehicles. OpenAI, CoPilot, and Chinese DeepSeek are its direct rivals that make this lawsuit crucial for its growth.

According to the lawsuit, Apple’s decision to include ChatGPT directly into iPhones, iPads, and Macs gives OpenAI an unfair advantage that sidelines its rivals like Grok. Musk puts that even after “a million reviews with a 4.9-star average,” on Grok, Apple refuses to promote it, which is evidence of bias tied to its OpenAI partnership.

OpenAI straightaway denies these claims, calling Musk’s lawsuit “a pattern of harassment,” while Apple has yet to comment.

Is Musk's Case Strong?

Some legal experts, as quoted by Forbes, note that Apple’s dominance in the smartphone market could add weight to Musk’s claim, as courts might see ChatGPT integration in iPhones as creating a monopoly.

However, Apple is likely to claim that its partnership with OpenAI was a business choice, not an anticompetitive move, and may cite security or operational reasons for embedding ChatGPT.

The case is said to be significant as it might shape how courts define the AI market in antitrust law.

About the author Annie Sharma

Annie Sharma is a technology journalist at ABP Live English, focused on breaking down complex tech stories into clear, reader-friendly narratives. Gaining hands-on experience in digital storytelling and news writing with leading publications, Annie believes technology should feel accessible rather than overwhelming, and follows a clear, reader-first approach in her work.

For tips and queries, you can reach out to her at annies@abpnetwork.com.