Elon Musk has escalated his ongoing dispute with Apple and OpenAI by filing a lawsuit that accuses the two companies of colluding to suppress competition in the artificial intelligence market. According to reports, the case was filed in a Texas federal court, where Musk’s legal team alleged that Apple and OpenAI had effectively “locked up” the market to maintain their dominance while making it difficult for rivals like xAI and Musk’s social platform X to compete.
The billionaire entrepreneur, who has frequently voiced concerns about anti-competitive practices in the tech industry, reportedly claimed that Apple’s App Store policies unfairly favoured OpenAI’s ChatGPT while sidelining his Grok AI chatbot. Musk had earlier indicated that he might take legal action after Grok was excluded from Apple’s curated app lists despite being among the most downloaded AI apps. He suggested that Apple was “playing politics” by prioritising OpenAI’s products.
Elon Musk’s xAI Startup is Suing Apple and OpenAI for “Thwarting Competition and Innovation” https://t.co/Cgrtj4YN3r— Thurrott Feed (@Thurrottfeed) August 25, 2025
The court filing alleged that customers were directly harmed by such practices, as they were unable to easily switch to alternative smartphones and AI-powered applications that could potentially rival Apple and OpenAI’s offerings. Musk’s lawyers said the objective of the lawsuit was not only to halt what they described as an “anticompetitive scheme” but also to recover billions of dollars in damages.
OpenAI, however, dismissed the accusations. In a statement sent to the New York Post, a spokesperson described Musk’s claims as consistent with what they called his “pattern of harassment.” While OpenAI addressed the issue directly, Apple declined to immediately comment on the matter, and Musk’s company xAI also remained silent on the legal move.
Industry observers noted that the dispute highlights the growing friction between leading players in the AI sector as competition intensifies. Musk has already launched separate legal proceedings against OpenAI, alleging that the company abandoned its original non-profit mission in favour of commercial gains. Meanwhile, Apple’s partnership with OpenAI has drawn scrutiny, as it strengthens Apple’s AI features on its devices, potentially deepening its market grip.
Earlier, Sam Altman had also brushed off Musk’s concerns, suggesting that Musk was simply attempting to advance his own businesses. Apple, in past responses to similar complaints, insisted that its App Store listings were curated based on expert judgment and designed to balance user safety with developer opportunities. The company claimed that its approach supported fair visibility for apps across fast-evolving categories.
The lawsuit is expected to draw significant attention, as it not only involves three of the most influential names in technology but also raises broader questions about antitrust issues in the fast-growing AI ecosystem.
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