Musk files lawsuit against OpenAI and Apple, accusing them of monopoly

Elon Musk’s xAI and X have filed a lawsuit against OpenAI and Apple, accusing the companies of creating illegal monopolies in the AI and mobile app market. The lawsuit was filed on August 25, 2025, in federal court in California, The Verge reports.

Musk claims that the integration of ChatGPT into the iPhone as part of Apple Intelligence gives OpenAI an unfair advantage: users are allegedly "forced" to use ChatGPT, which reduces interest in third-party AI solutions, including xAI's Grok chatbot. The lawsuit also alleges that the App Store is undermining the visibility of competitors in sections like "Must-Have Apps," where ChatGPT was the only AI app as of August 24.

Additionally, the lawsuit accuses Apple of using its dominant position in the smartphone market to create a "protective barrier" for OpenAI, as ChatGPT's integration into the iPhone gives the company access to billions of user queries.

Apple has previously denied Musk's allegations, saying that the App Store algorithms are "designed to be fair and unbiased." OpenAI, in a comment to The Verge, called the lawsuit another "attempt at pressure" from Musk.