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Elon Musk Sues Apple, OpenAI for Allegedly Colluding on Artificial Intelligence Monopoly

By Advanced AI EditorAugust 26, 2025No Comments2 Mins Read
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Elon Musk filed a lawsuit Monday against Apple and Open AI for allegedly creating an artificial intelligence monopoly.

The tech billionaire owns his own artificial intelligence firm, xAI, and noted in the lawsuit that partnerships like this one prevent competition and innovation in the AI space.

More from TheWrap

“Working in tandem, Defendants Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from
competing,” the lawsuit filed Monday read. “Plaintiffs bring this suit to stop Defendants from perpetrating their anticompetitive scheme and to recover billions in damage.”

The complaint brought forward by xAI and X Corp. did not specify a more exact number than “billions in damage” that the plaintiffs have sought after.

Apple has recently partnered with OpenAI to integrate ChatGPT into Apple’s operating system and products, including iPhones, iPads and other devices. The lawsuit, filed in U.S. District Court for the Northern District of Texas, warned that Apple’s partnership is an effort to get ahead of the “existential threat to its business.”

“Apple knows it cannot escape the inevitable — at least not alone,” the lawsuit read. “In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots.”

Musk has been critical of Apple for not promoting his AI chatbot Grok in its App Store. The lawsuit specified that the tech giant deprioritized competing AI chatbots in the app store and even delayed approval for updates to xAI’s Grok app, citing the OpenAI deal as the primary reason for refraining from prominently featuring the X app and the Grok app in the app store.

In a post to his social platform Monday, Musk complained that with a million reviews Apple will still not list his AI chatbot Grok on their rankings lists.

Musk launched xAI in 2023 as a competitor to OpenAI, Meta Platforms and China’s DeepSeek. The AI firm also acquired X earlier this year, as Grok’s presence on the app has increased.

The post Elon Musk Sues Apple, OpenAI for Allegedly Colluding on Artificial Intelligence Monopoly appeared first on TheWrap.



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