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Musk Sues Apple & OpenAI for AI Market Monopoly

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Elon Musk has initiated legal proceedings against Apple and OpenAI, asserting that their collaboration to integrate ChatGPT into the iPhone is hindering competition within the artificial intelligence sector. The lawsuit, submitted on Monday by Musk’s X Corp and xAI, alleges that Apple’s App Store prioritizes its own chatbot over competitors like Grok and other “super” applications.

In its claims, Musk’s companies argue that iPhone users are discouraged from seeking out third-party AI applications because Apple mandates the use of ChatGPT as the default chatbot when using Apple Intelligence. The lawsuit contends, “Apple and OpenAI have entrenched their market positions to preserve their monopolies and inhibit innovators like X and xAI.”

Earlier this month, Musk had warned Apple of potential legal action, accusing the tech giant of manipulating App Store rankings to favor OpenAI. “Apple’s practices ensure that no other AI company can achieve a top spot in the App Store, which undoubtedly constitutes an antitrust breach,” Musk remarked at that time.

The legal complaint further notes that despite high ratings, neither the X nor Grok applications have appeared in the App Store’s “Must-Have Apps” category, where, it claims, ChatGPT was the sole AI chatbot highlighted on August 24, 2025.

Additionally, X and xAI assert that the partnership between Apple and OpenAI establishes a “moat” protecting OpenAI due to Apple’s dominance in the smartphone market. The integration of ChatGPT into iPhones allegedly provides OpenAI with access to a vast pool of user requests, potentially comprising billions of inputs from hundreds of millions of devices, creating an uneven playing field.

In response to the lawsuit, OpenAI’s spokesperson, Kayla Wood, characterized the filing as part of Musk’s ongoing “pattern of harassment.” Earlier this month, Apple assured Bloomberg that its App Store is intentionally structured to promote fairness and impartiality regarding application visibility.

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Musk Sues Apple & OpenAI for AI Market Monopoly
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