Elon Musk’s AI startup, xAI, has officially taken Apple and OpenAI to court. The lawsuit claims that Apple is giving ChatGPT an unfair boost in the App Store, effectively sidelining competitors like xAI’s Grok.
What Sparked the Lawsuit
The filing, which dropped on Monday, opens with strong language:
“This is a tale of two monopolists joining forces to ensure their continued dominance in a world rapidly driven by the most powerful technology humanity has ever created: artificial intelligence.”
Musk’s core complaint is that Apple’s close partnership with OpenAI — which brings ChatGPT directly into iOS and macOS through Apple Intelligence features — has created a stacked deck. According to xAI, Apple’s App Store rankings and review process give preference to OpenAI’s ChatGPT while dragging down competing AI apps.
The lawsuit argues that this “exclusive arrangement” makes it nearly impossible for rivals like Grok to scale because ChatGPT gets access to billions of user prompts from hundreds of millions of iPhones, giving it an automatic edge.
Musk’s Grievances With Apple and OpenAI
In the filing, xAI accuses Apple of:
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Manipulating App Store charts so ChatGPT ranks higher than competitors.
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Delaying App Store reviews for rival AI apps like Grok.
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Locking the market by making ChatGPT the default generative AI assistant on Apple devices.
Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation.
xAI will take immediate legal action.
— Elon Musk (@elonmusk) August 12, 2025
The lawsuit frames this as part of a broader monopoly problem, not just about rankings. Musk says Apple and OpenAI’s partnership boxes out innovation from other AI players, cementing ChatGPT as the only generative AI chatbot with seamless access to Apple’s ecosystem.
Pushback From the Community
Musk previously claimed on X (formerly Twitter) that it was “impossible for any AI company besides OpenAI to reach #1 in the App Store.”
That statement didn’t go unchallenged. Users quickly pointed out — with receipts via Community Notes — that competitors like DeepSeek and Perplexity had both hit the top spot even after Apple’s deal with OpenAI.
So, while Musk argues systemic favoritism, the data shows competitors have still managed to rise to #1.
Why This Matters
The lawsuit lands in the shadow of recent antitrust rulings. Just last year, Google lost a case over its multibillion-dollar deal with Apple to be the default search engine on iPhones. Musk’s lawyers could use that precedent to argue that Apple’s relationship with OpenAI unfairly restricts competition in generative AI.
But whether this case sticks depends on how much evidence xAI can present that Apple deliberately pushed Grok down the App Store ladder.
The Big Question
At the heart of the case is this: is Apple actively shutting out Grok and other AI competitors, or is Musk frustrated that his app hasn’t taken off like he hoped?
xAI’s legal fight could shed light on how much control Apple and OpenAI really exert over the generative AI space. If the courts see it as anti-competitive behavior, this could shake up not just App Store policies but the future of AI integration in iPhones and Macs.
For now, it’s a waiting game to see if Musk can turn his grievances into a legal win.
