AI D​A​M​N/xAI Sues Apple and OpenAI Over Alleged AI Market Monopoly

xAI Sues Apple and OpenAI Over Alleged AI Market Monopoly

xAI Sues Apple and OpenAI Over Alleged AI Market Monopoly

August 26, 2025 — Elon Musk's artificial intelligence company, xAI, has filed a lawsuit in U.S. federal court against Apple and OpenAI, alleging collusion to monopolize the AI market. The lawsuit, filed on August 25, has sparked significant attention across the technology sector.

The Allegations

According to the complaint, xAI claims that Apple's partnership with OpenAI has granted ChatGPT exclusive status as the only generative AI chat tool on Apple devices. This arrangement, xAI argues, unfairly excludes competing AI products from the market. The lawsuit further alleges that this exclusivity provides OpenAI with access to "billions of potential user inputs," giving it an undue advantage in model improvement and market dominance.

Background of the Partnership

The collaboration between Apple and OpenAI began in 2024 when Apple announced plans to integrate ChatGPT, powered by GPT-4o technology, into Siri and its latest operating systems (iOS, iPadOS, and macOS). xAI criticized Apple for lacking innovation in AI and instead leveraging its partnership with OpenAI to maintain its market position.

Additional Claims

xAI also accused Apple of manipulating App Store rankings and deliberately delaying app updates, which it claims has disadvantaged its AI assistant, Grok. Earlier this month, Musk publicly threatened legal action after Grok was excluded from Apple's "essential apps" list.

Responses from the Defendants

As of now, Apple has not issued an official response to the lawsuit. The company has previously defended its App Store practices as "fair and unbiased," emphasizing collaborations that enhance user experience. OpenAI, however, characterized the lawsuit as part of Musk's "ongoing harassment."

Legal experts note parallels between xAI's strategy and the U.S. Department of Justice's antitrust case against Google. In that case, Google was found to have illegally monopolized the search market by securing exclusive distribution channels on iPhones. xAI alleges that OpenAI is employing similar tactics to dominate the AI-driven search market.

Potential Implications

If the court rules in favor of xAI, Apple may be required to establish similar distribution agreements with other AI firms and adopt more equitable practices in the App Store. Such an outcome could reshape the competitive dynamics of the AI industry.

The rapid advancement and commercialization of AI technology have intensified competition among tech giants for control of the market. The resolution of this lawsuit will be closely watched as a potential benchmark for future antitrust actions in the sector.

Key Points:

  • xAI alleges that Apple and OpenAI are colluding to monopolize the AI market.
  • ChatGPT's exclusivity on Apple devices is cited as a key issue.
  • Apple's App Store practices are under scrutiny for allegedly disadvantaging competitors like Grok.
  • The lawsuit draws comparisons to past antitrust cases, such as the DOJ's action against Google.
  • A ruling in favor of xAI could force Apple to revise its App Store policies.