Elon Musk’s artificial intelligence company, xAI, has filed a lawsuit against Apple and OpenAI, claiming their partnership to integrate ChatGPT into the iPhone is harming competition in the AI market. The case, filed on 25 August by Musk-owned X Corp. and xAI, also accuses Apple’s App Store of deliberately limiting visibility for rival chatbots and “super” apps, including Musk’s own chatbot Grok and the social platform X.
Allegations of unfair competition
According to the lawsuit, Apple’s integration of ChatGPT as a default feature of its Apple Intelligence system discourages iPhone users from downloading competing AI applications. The filing claims the companies have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”
The complaint states that iPhone users “have no reason” to explore alternative AI apps due to Apple’s alleged tactics. Musk has previously accused the tech giant of manipulating App Store rankings to favour OpenAI, stating earlier this month: “Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.”
Concerns over market dominance
The lawsuit highlights concerns that Apple’s partnership with OpenAI creates a significant barrier for other AI companies. It argues that the integration of ChatGPT provides OpenAI with access to “potentially billions of user prompts originating from hundreds of millions of iPhones,” giving it what Musk’s companies describe as an unfair advantage.
The complaint further alleges that Apple’s App Store prioritised ChatGPT over other services. While the X and Grok apps have reportedly achieved high user ratings, the lawsuit claims neither app appeared in the App Store’s “Must-Have Apps” section. It also alleges that on 24 August, ChatGPT was the only AI chatbot featured in that section.
Responses from Apple and OpenAI
OpenAI responded to the lawsuit by dismissing Musk’s claims, describing the legal action as part of a pattern of hostility from the entrepreneur. “This latest filing is consistent with Mr Musk’s ongoing pattern of harassment,” said Kayla Wood, an OpenAI spokesperson, in a statement to The Verge.
Apple, which has not yet explicitly commented on the lawsuit, previously told Bloomberg that its App Store is “designed to be fair and free of bias” following Musk’s earlier accusations.
The legal action marks the latest escalation in tensions between Musk and OpenAI, a company he co-founded in 2015 before leaving its board in 2018. The lawsuit could intensify regulatory scrutiny of Apple’s App Store policies and raise further questions about competition in the rapidly evolving AI sector.
