SpecialtyNetworkSllc – Elon Musk’s X Corp and his AI company xAI have launched a lawsuit against Apple and OpenAI. They argue the two tech giants are actively blocking fair competition in artificial intelligence.
Filed on August 25, 2025, the lawsuit states that Apple integrated ChatGPT into the iPhone through its Apple Intelligence platform. By making ChatGPT the default chatbot, Apple leaves users with little reason to try alternatives. As a result, Musk’s teams claim iPhone owners ignore rival apps like Grok or X’s chatbot.
Musk’s companies declared: “Apple and OpenAI have locked the market to maintain a monopoly and prevent innovators from competing.”
According to the lawsuit, Apple uses its App Store to disadvantage competitors. Grok and X’s apps received high ratings, yet they failed to appear in the “Must-Have Apps” section. On August 24, 2025, ChatGPT was the only chatbot promoted there.
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Earlier this year, Musk accused Apple of rigging App Store rankings in favor of OpenAI. He described the move as a “clear antitrust violation.” Now, the complaint expands on that accusation, insisting that Apple and OpenAI built a protective moat to shield themselves from competition.
By embedding ChatGPT directly into the iPhone, OpenAI gains access to billions of potential requests from hundreds of millions of users. This integration, Musk argues, gives OpenAI an unfair head start while pushing out smaller AI competitors. Consequently, new entrants struggle to gain visibility or attract users.
OpenAI quickly dismissed Musk’s claims. Kayla Wood, its spokesperson, said: “This filing follows a familiar pattern of attacks Mr. Musk often launches.”
Apple also addressed the allegations. The company told Bloomberg that its App Store is built to remain fair and free of bias, rejecting Musk’s accusations of favoritism.
This legal clash underscores the intensifying battle for dominance in the AI industry. Apple, OpenAI, Google, and Musk’s xAI are all competing for market share. Moreover, the case raises questions about antitrust law, user freedom, and the role of Big Tech in AI.
If Musk wins, Apple may need to loosen App Store rules and reduce OpenAI’s advantage. However, if Musk loses, Apple’s integration of ChatGPT could remain a defining feature in the smartphone AI landscape for years.
