xAI Sues Apple and OpenAI Over Alleged Anticompetitive Practices

August 25, 2025
Elon Musk's xAI has filed a lawsuit against Apple and OpenAI, accusing them of colluding to stifle competition in the AI market.

xAI, founded by Elon Musk, has initiated legal action against Apple Inc. and OpenAI, alleging that the two companies are engaging in anticompetitive collusion. The lawsuit claims that Apple and OpenAI are working together to suppress competition in the AI sector, particularly in the market for generative AI chatbots.

The legal complaint highlights Apple's partnership with OpenAI to integrate ChatGPT into its systems as a move to protect its smartphone monopoly. Musk's lawsuit argues that this collaboration unfairly benefits OpenAI, which he describes as a monopolist in the AI chatbot market.

This lawsuit is the latest in a series of disputes between Musk and OpenAI, a company he co-founded but later parted ways with. Musk has previously attempted to block OpenAI's transition to a for-profit entity and made an unsolicited bid to acquire the company, which was rejected.

The partnership between Apple and OpenAI was announced in June 2024, with collaborative features expected to be released by December. Neither Apple nor OpenAI has commented on the lawsuit at this time.

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