Elon Musk’s xAI sues Apple and OpenAI over AI competition, App Store rankings

Elon Musk's artificial intelligence firm, xAI, has initiated legal proceedings against both Apple and OpenAI in a Texas federal court. The lawsuit accuses these tech giants of engaging in unfair practices aimed at stifling competition within the AI sector. According to xAI, Apple and OpenAI have monopolized key markets to suppress emerging competitors like xAI. The complaint alleges that their collaboration has hindered the visibility of xAI’s applications, particularly on the Apple App Store. xAI claims that without Apple's exclusive arrangement with OpenAI, there would be no justification for Apple to limit the promotion of the X app and the Grok app. Neither Apple nor OpenAI has provided a response to these allegations as of yet. Earlier this month, Musk expressed his frustrations on his social media platform, X, suggesting that Apple's conduct obstructs any AI company other than OpenAI from achieving the top ranking in the App Store. The partnership between Apple and OpenAI has led to the integration of the ChatGPT AI platform into various Apple devices, including iPhones, iPads, and Macs. In a bid to strengthen its own AI capabilities, xAI acquired X for $33 billion back in March. Additionally, Musk has incorporated the Grok chatbot into Tesla's electric vehicles. Since its launch less than two years ago, xAI has been in competition not only with OpenAI but also with the Chinese startup DeepSeek, which is backed by Microsoft. Musk is also pursuing a separate lawsuit against OpenAI and its CEO Sam Altman in California, aiming to challenge the organization's shift from a nonprofit to a for-profit model, a transition he argues goes against the original vision of the company he co-founded in 2015. The App Store's policies have come under scrutiny in various legal challenges, including a notable case brought by Epic Games, the creators of Fortnite, which has prompted a judge to mandate that Apple allow more competition regarding app payment options.