Elon Musk’s xAI Sues Apple and OpenAI Over Grok App Facing Competitive Threats

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Following the rise of ChatGPT on the Apple App Store, Elon Musk, through his artificial intelligence firm xAI, has filed a lawsuit in a U.S. federal court in Texas against both Apple and OpenAI. The complaint alleges that these two companies are illegally conspiring to stifle competition, specifically targeting firms like xAI. Previously, Musk accused Apple of giving ChatGPT an unfair advantage on the App Store, promising legal action if such practices continued. It now appears he has followed through with his threat.

Lawsuit Claims Apple Has an ‘Exclusive Deal with OpenAI’ on Its App Store to Prevent Competitors from Rising in Rankings

The lawsuit contends that both Apple and OpenAI have locked up markets to maintain their monopolies, thereby preventing innovators such as xAI’s Grok app from gaining traction. The report suggests that without this exclusive arrangement, it would be illogical for Apple to suppress competition in the App Store rankings. Consequently, Musk is seeking billions of dollars in damages.

In response, OpenAI did not back down and immediately issued a statement. A company spokesperson said, “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.” Sam Altman, CEO of OpenAI, further criticized Musk by highlighting the hypocrisy in his statements about manipulating systems for personal gain.

In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

October 8, 2025

Apple has not yet commented on this development but is no stranger to legal challenges related to its App Store policies and anti-competitive practices. In a long-standing case with Epic Games, Apple was forced to allow third-party app payment options after removing Fortnite from the App Store.

News Source: Reuters

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