Elon Musk’s artificial intelligence startup xAI has filed a federal lawsuit against Apple and OpenAI, accusing the two companies of colluding to suppress competition in the fast-growing AI market.

Filed in a Texas federal court, the complaint claims Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”

The lawsuit points to Apple’s exclusive integration of ChatGPT into iPhones, iPads, and Macs, alleging that the deal unfairly disadvantages rival platforms like Musk’s Grok app.

“If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store,” the lawsuit states.

xAI is reportedly seeking billions of dollars in damages.

Responses from openai and apple

OpenAI pushed back strongly, with a spokesperson saying:

“This latest filing is consistent with Mr Musk’s ongoing pattern of harassment.”

Apple has not yet issued a public response to the claims.

Earlier this month, Musk warned that Apple’s conduct “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”

Why the case matters

Legal experts say the dispute could become the first major U.S. court case to define the boundaries of competition in the AI market.

Christine Bartholomew, a law professor at the University at Buffalo, described it as “a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.”

While Apple dominates the smartphone market, scholars note it may argue that the partnership was formed in a competitive environment and that it has no legal obligation to promote rival apps.