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Elon Musk’s xAI and X Sue Apple and OpenAI Over Alleged AI Monopoly

Elon Musk’s xAI and X Sue Apple and OpenAI Over Alleged AI Monopoly
  • Elon Musk’s companies, X and xAI, have filed a federal lawsuit against Apple and OpenAI, accusing them of colluding to suppress competition in the generative AI space.
  • The suit challenges Apple’s exclusive integration of ChatGPT into its operating systems, claiming it unfairly boosts OpenAI’s dominance and sidelines rivals like Grok.
  • Musk’s legal team argues the arrangement violates antitrust laws and demands damages. The case marks a new chapter in Musk’s ongoing feud with OpenAI co-founder Sam Altman.

Elon Musk has officially taken his battle with Apple and OpenAI to court, launching a lawsuit that could reshape how AI tools are distributed across smartphones.

Filed in Texas by Musk’s companies X and xAI, the suit accuses Apple and OpenAI of forming an exclusive partnership that unfairly blocks competitors from gaining traction. At the heart of the complaint is Apple’s decision to integrate ChatGPT directly into its operating systems — a move Musk claims gives OpenAI privileged access to user data and visibility, while leaving rivals like Grok out in the cold.

The lawsuit argues that the deal has skewed App Store rankings, boosted ChatGPT downloads, and made it nearly impossible for other generative AI chatbots to compete on equal footing. Musk’s team says the arrangement has stifled innovation and allowed both Apple and OpenAI to maintain monopolistic control over their respective markets.

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OpenAI currently dominates the US chatbot space with an estimated 80% market share, while Apple controls roughly 65% of the smartphone market. The lawsuit also points to Apple’s history of exclusive tech partnerships and app store controversies, including past legal battles with Google.

Apple has previously defended its app store algorithms as fair, noting that other AI apps like DeepSeek and Perplexity have topped charts in recent months. Meanwhile, reports suggest Apple is exploring additional chatbot integrations, including Google’s Gemini, to expand Siri’s capabilities.

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For Musk, the lawsuit is more than a business dispute — it’s a continuation of his public fallout with OpenAI CEO Sam Altman, a former ally turned rival. As the case unfolds, it could have far-reaching implications for how AI platforms are promoted, accessed, and regulated across mobile ecosystems.


🏷️ Tags

Elon Musk, xAI, X Corp, Apple, OpenAI, ChatGPT, Grok chatbot, antitrust lawsuit, AI competition, Siri integration, App Store rankings, Sam Altman, smartphone monopoly, generative AI market, NewsandVibes

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