- Musk alleges Apple and OpenAI are colluding to block AI competition.
- The lawsuit highlights the ongoing Musk-Altman feud.
- Outcome could reshape AI partnerships and app store rankings.
Elon Musk’s AI company, xAI, alongside his social media platform X, filed a lawsuit on Monday targeting Apple and OpenAI. The suit alleges that the two tech giants are colluding to suppress competition in the AI sector, particularly generative AI chatbots. Musk claims that Apple is leveraging its smartphone dominance to favor OpenAI, making it difficult for other AI companies to gain traction.
“In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots,” the lawsuit states.
A long-running Musk-Altman feud
This legal move adds another chapter to the ongoing rivalry between Musk and OpenAI CEO Sam Altman. Musk, a former co-founder and co-chair of OpenAI, has repeatedly challenged the company’s shift toward for-profit operations. Earlier this year, he submitted a $97.4 billion unsolicited bid to acquire OpenAI, which was promptly rejected. Musk has also publicly criticized OpenAI’s influence on app store rankings, claiming that “it’s impossible for any AI company besides OpenAI to reach #1 in the App Store.”
This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn't like. https://t.co/HlgzO4c2iC
— Sam Altman (@sama) August 12, 2025
Apple-OpenAI partnership under scrutiny
The lawsuit specifically targets Apple’s partnership with OpenAI, which was announced last June. Under this collaboration, OpenAI’s ChatGPT technology is being integrated into Apple’s ecosystem, with new features expected to roll out in December. Musk argues that this partnership unfairly consolidates market power, stifling innovation from other AI developers.
What’s next for the AI industry?
The legal battle raises significant questions about antitrust regulations and the competitive landscape of AI. If Musk succeeds, it could force major tech companies to reconsider partnerships and potentially open up opportunities for emerging AI startups. For now, the case highlights the growing tension between established tech monopolies and new AI challengers.
Also Read: OpenAI’s Ambitious Future: Beyond GPT-5 and AI Models
As Musk’s xAI confronts both Apple and OpenAI in court, the outcome could reshape how AI products are integrated and distributed across platforms. With billions at stake and competition heating up, the tech world will be watching closely.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
