By NORAD and USNORTHCOM Public Affairs
Two companies backed by billionaire Elon Musk have launched a lawsuit against Apple and OpenAI, accusing the firms of illegally collaborating to shut out competition in the rapidly growing artificial intelligence market.
The case, filed in federal court in Texas by Musk’s social media platform X and his artificial intelligence startup xAI, specifically challenges Apple’s 2024 decision to integrate OpenAI’s ChatGPT directly into the operating systems of iPhones and other devices. Musk’s businesses allege that the partnership constitutes an anti-competitive agreement that unfairly disadvantages rival firms.
The lawsuit formalizes a threat Musk made earlier this month, when he claimed Apple was giving OpenAI preferential treatment in App Store rankings. Apple has not yet issued a comment on the litigation, while OpenAI dismissed the claims as part of what it described as Musk’s “ongoing pattern of harassment.”
Musk co-founded OpenAI with Sam Altman in 2015, but the pair have since become vocal adversaries. Musk has repeatedly accused Altman of abandoning OpenAI’s founding principle of serving the public good and has criticized its close ties with large technology companies. Their rivalry has sharpened in recent years, as Musk launched his own ventures in artificial intelligence, including xAI and its flagship chatbot, Grok, designed as an alternative to ChatGPT.
In their complaint, X and xAI argue that Apple’s exclusive integration deal with OpenAI has no legitimate business justification. The lawsuit contends that the agreement gives ChatGPT preferential visibility and access to Apple’s user base of hundreds of millions, while rivals are excluded. According to the filing, the arrangement effectively channels Apple device users’ queries and data into OpenAI’s system, entrenching its dominance.
The firms further allege that the ChatGPT app was unfairly boosted in the App Store as a result of the deal, securing a competitive edge over other generative AI platforms. “The Apple-OpenAI arrangement has foreclosed competition among generative AI chatbots, deprived competing generative AI chatbots of scale, and reduced quality and innovation,” the lawsuit claims. “All of these impacts have, in turn, helped OpenAI and Apple maintain their monopolies.”
The filing estimates that OpenAI currently commands around 80% of the US generative AI chatbot market, while Apple holds about 65% of the domestic smartphone sector. Together, Musk’s companies argue, the two firms have the ability to tilt the playing field to their mutual advantage.
Apple’s partnerships with major tech companies and its App Store rules have already triggered scrutiny in courts and regulatory bodies around the world. It is facing a prominent antitrust battle with Google over similar concerns of unfair market practices.
Apple has previously defended its app store operations, insisting they are “fair and free of bias.” The company has also pointed out that several ChatGPT rivals — including DeepSeek and Perplexity — have topped App Store download charts at different times since 2024, suggesting no entrenched favoritism.
At the same time, reports have surfaced that Apple is exploring additional AI partnerships. The company has reportedly held talks with Google about using the latter’s Gemini chatbot to bolster the capabilities of its voice assistant, Siri — a sign that Apple’s integration strategy may not be limited to OpenAI.
The lawsuit adds another high-profile clash to Musk’s escalating conflict with OpenAI and Altman. It also marks the latest legal challenge aimed at Apple’s business practices, underscoring the scrutiny both companies face as they deepen their presence in the multibillion-dollar artificial intelligence sector.
