This article first appeared on GuruFocus.
Elon Musk’s xAI and its social media platform X filed a lawsuit accusing Apple (AAPL, Financials) and OpenAI of colluding to suppress competition in the smartphone and generative AI sectors.
The lawsuit, filed in the U.S. District Court for the Northern District of Texas, alleges Apple gives preferential treatment to OpenAI in App Store rankings, sidelining competing apps like GrokxAI’s generative AI chatbotand broader super app functionality tied to X.
According to the complaint, Apple’s integration of ChatGPT into its devicesiPhone, iPad, and Macstrengthens OpenAI’s monopoly position while undercutting new entrants in the AI space. Musk’s suit claims this strategy represents a desperate bid to protect Apple’s smartphone dominance.
OpenAI responded, calling the lawsuit part of Musk’s ongoing pattern of harassment. Apple has not publicly commented.
The filing escalates tensions between Musk and OpenAI CEO Sam Altman, who co-founded the organization with Musk in 2015. Musk left in 2018 over disagreements regarding the company’s direction and has since accused it of straying from its nonprofit mission.
Apple’s previous statements have maintained the App Store is fair and free of bias. However, Musk argues that the company’s collaboration with OpenAI makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.
The suit follows earlier threats Musk made on X, where he alleged Apple was engaging in unequivocal antitrust violations. OpenAI has countered in the past, accusing Musk of attempting a sham bid to acquire the company for $97.4 billion to disrupt its business partnerships.
Investors watching the rapid expansion of generative AI technologies will monitor this legal battle for its potential to reshape market access and app store policies.