Elon Musk’s artificial intelligence company xAI and X Corp. have filed a lawsuit in the US against Apple and OpenAI. The lawsuit alleges that the companies’ agreement to integrate ChatGPT into iPhones stifles competition in the artificial intelligence industry.
xAI sues OpenAI and Apple
The lawsuit documents allege that Apple’s App Store discriminates against competing chatbots and “super” apps, particularly X and Grok. The documents argue that iPhone users who enable Apple Intelligence do not need to download third-party AI apps because ChatGPT automatically becomes the default chatbot.
The lawsuit alleges that Apple and OpenAI monopolize the market, preventing innovators like X and xAI from competing. According to the lawsuit documents, while the X and Grok apps are highly ranked, they do not appear in the App Store’s must-have apps section. As of August 4, 2025, ChatGPT is the only AI chatbot listed in this section.
xAI also claims that the partnership between Apple and OpenAI gives OpenAI an advantage due to Apple’s monopoly on the smartphone market. ChatGPT integration on the iPhone potentially gives OpenAI access to billions of user data from hundreds of millions of iPhones.
In a statement regarding the lawsuit, OpenAI linked the situation to Musk’s ongoing harassment trend. Apple stated that the App Store is designed to be fair and unbiased.
