Elon Musk’s artificial intelligence startup, xAI, has filed a federal lawsuit in Texas against Apple and OpenAI, alleging unfair suppression of AI competition. The complaint emphasizes xAI’s claim that Apple’s App Store practices block its AI products and limit innovation. Musk’s team insists that Apple and OpenAI have conspired to dominate the AI market and hinder challengers like xAI.
Allegations of App Store Manipulation
According to xAI, Apple favors OpenAI’s ChatGPT integration across iPhones, iPads, and Macs, preventing xAI’s apps, including Grok and X, from gaining prominence in the App Store. “Apple’s exclusive deal with OpenAI restricts competition and limits market access for xAI,” the lawsuit states.
Earlier this month, Musk publicly criticized Apple on X, claiming its policies “make it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
xAI’s Rapid Growth and Integration
Launched less than two years ago, xAI acquired X in March for $33 billion to enhance its chatbot training capabilities. Musk has integrated xAI’s Grok chatbot into Tesla vehicles, positioning the startup to compete directly with OpenAI and Chinese AI startup DeepSeek.
The lawsuit targets both Apple’s App Store practices and OpenAI’s alleged monopoly behaviors, claiming they “lock up markets and prevent innovators from competing fairly.”
Parallel Legal Actions
Musk is also pursuing legal action in California against OpenAI and CEO Sam Altman to challenge the nonprofit-to-for-profit conversion. Musk co-founded OpenAI with Altman in 2015 as a nonprofit organization.
Apple has faced multiple lawsuits over App Store policies, including a prominent case from Fortnite maker Epic Games, which argued for more competition in app payment options. Courts have increasingly scrutinized App Store dominance and its impact on competition.
Implications for AI Industry
The xAI lawsuit raises questions about how major tech companies influence AI access and market fairness. If successful, xAI could gain greater visibility in the App Store, while Apple and OpenAI could face restrictions on exclusive partnerships.
Musk’s aggressive legal strategy underscores his intent to challenge entrenched tech giants and expand xAI’s influence in the growing AI market.
Stay tuned to Maple Wire for updates on the xAI lawsuit, Apple App Store developments, and evolving AI competition.
