Elon Musk Declares War on Apple–OpenAI Alliance with Landmark Antitrust Lawsuit

Elon Musk Declares War on the Apple–OpenAI Alliance: xAI Files Antitrust Suit

Fort Worth, Texas – August 25, 2025 — In a dramatic escalation of the AI wars, Elon Musk’s company xAI has filed a sweeping antitrust lawsuit against Apple and OpenAI, claiming the two tech giants are “illegally working together” to crush competition. The suit alleges that Apple’s integration of ChatGPT into the iPhone unfairly locks out rivals like Musk’s own chatbot, Grok.

The Core Allegation: A Rigged AI Ecosystem

At the center of the lawsuit is Apple’s decision to weave ChatGPT into its flagship devices through Apple Intelligence. Musk argues this partnership effectively rigs the App Store in OpenAI’s favor, giving ChatGPT a level of visibility and access no other AI app enjoys.

According to xAI, Grok has been sidelined—even as it racks up strong user reviews and wide adoption. Musk has publicly fumed that despite “millions of reviews with near-perfect ratings,” Grok doesn’t appear in Apple’s curated lists, while ChatGPT dominates featured placements.

The lawsuit also highlights Apple’s exclusive agreement with OpenAI, framing it as a deal that cements ChatGPT’s dominance while creating a near-insurmountable barrier for competitors.

The Stakes: Antitrust for the AI Era

This isn’t Musk’s first legal fight with OpenAI, but this case could be his most consequential. The lawsuit touches on bigger questions about how antitrust law applies to emerging technologies. If Apple controls the most valuable consumer platform in the world—the iPhone—should it be allowed to give preferential treatment to one AI provider over others?

Legal analysts say the case could become a bellwether for how courts define fair competition in artificial intelligence. It may determine whether smartphone ecosystems must remain neutral when it comes to choosing which AI assistants users can access.

Responses from the Contenders

So far, Apple has insisted that its App Store remains “fair and free of bias,” while OpenAI has brushed off the lawsuit as yet another example of Musk’s ongoing campaign against them. Neither company has shown any sign of backing down, setting the stage for a protracted legal battle.

What This Means for Grok—and AI Users

Grok, launched in 2023 and now on its fourth generation, has steadily gained features and integrations, from powering chat inside Musk’s social platform X to being embedded in Tesla vehicles. Musk argues, however, that Apple’s closed ecosystem prevents Grok from reaching its full potential.

The lawsuit seeks billions in damages and demands injunctions to stop what Musk describes as “anti-competitive collusion” between Apple and OpenAI.

Whether this case becomes the defining antitrust showdown of the AI age or just another example of Musk’s confrontational style, the stakes are enormous. If xAI prevails, it could reshape how Apple, OpenAI, and every other AI developer compete for space in the global smartphone market. If it fails, Musk may be left once again railing against rivals who seem to be winning the adoption race.

Either way, one thing is clear: the battle for AI dominance has moved beyond labs and boardrooms—straight into the courtroom.