Elon Musk's xAI Sues Apple and OpenAI Over AI Market Monopolization
Elon Musk's AI startup, xAI, has launched a lawsuit against Apple and OpenAI, alleging monopolistic practices in the Artificial Intelligence market. The case, which could set a landmark for AI and competition law in the U.S., seeks billions in damages and raises significant antitrust questions.
The lawsuit accuses Apple of blocking competition by exclusively integrating OpenAI's ChatGPT into its iPhone, iPad, and Mac operating systems, preventing xAI's Grok and X-App from accessing these platforms. Legal observers consider this a test case for whether tech giants can exclusively partner with certain AI services in the generative AI era.
Apple may defend its actions by citing security and operational aspects of exclusive partnerships. However, the company could also face scrutiny over rumors suggesting it may increasingly work with Google's AI technology in the future. The outcome of this case could determine if an independent market for AI services is recognized, potentially reshaping the industry's regulation and competitive landscape.
The lawsuit, filed in September 2025, is set to be a pivotal moment in AI regulation and competition. If xAI prevails, it could lead to court-imposed data-sharing obligations, promoting competition and potentially reshaping collaborations between tech giants like Apple, Google, Microsoft, and AI companies including OpenAI.
