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Elon Musk has filed a lawsuit in Texas against Apple and OpenAI, accusing them of colluding to stifle competition in the artificial intelligence (AI) industry.
The case alleges that Apple’s exclusive partnership with OpenAI giving ChatGPT priority access on iPhones, iPads, and Macs unfairly sidelines Musk’s AI startup, xAI, and its chatbot, Grok. Musk argues that with Apple controlling about 65% of the smartphone market, the integration makes it nearly impossible for competing AI tools to thrive.
The lawsuit follows Apple’s 2024 announcement to fully embed ChatGPT into its ecosystem. Musk contends that this move severely limits fair competition on Apple’s App Store, even if users prefer alternatives like Grok. Earlier this month, Musk had publicly warned he would take legal action over what he described as Apple’s “unfair practices.”
Neither Apple nor OpenAI has commented on the case. However, OpenAI CEO Sam Altman recently criticized Musk, accusing him of using his social platform X to attack rivals while promoting his own ventures.
Despite the legal challenge, Apple’s stock gained 0.6% on Monday, while Tesla—another Musk-led company—saw a 1.2% rise. OpenAI remains privately held, while xAI, still in its early stages, faces stiff competition from major players such as Microsoft-backed OpenAI and China’s DeepSeek.
