Apple allegedly colludes with OpenAI, causing AI competition suppression, according to Elon Musk's lawsuit claim.
In a significant move, Elon Musk's companies, xAI and X Corp, have filed a lawsuit against Apple and OpenAI in a federal court in Texas. The lawsuit alleges that the tech giants are collaborating to establish a monopoly in the AI sector and to exclude competing AI systems like Musk's chatbot, Grok, from the market.
The lawsuit centres around Apple integrating ChatGPT into iPhones through its Apple Intelligence system. This setup, according to Musk's companies, leaves users with "no reason" to download rival AI apps. The lawsuit claims that this direct integration gives OpenAI access to "potentially billions of user prompts," an advantage that could put other AI apps at a disadvantage.
The lawsuit further alleges that this access gives OpenAI an unfair edge over other AI apps, as ChatGPT was the only AI chatbot featured in Apple's "Must-Have Apps" section in the App Store as of August 24, 2025. Despite X Corp's AI chatbot, Grok, achieving strong rankings, neither it nor any other competing AI app appeared in this section.
OpenAI has dismissed the lawsuit, with spokesperson Kayla Wood stating it is consistent with Elon Musk's ongoing pattern of harassment. Apple has previously defended its App Store policies, stating that the store is "designed to be fair and free of bias."
It's important to note that neither the lawsuit nor the response from OpenAI or Apple mentions any companies named X and xAI, besides Elon Musk's companies. Additionally, the lawsuit does not mention any specific details about the "Must-Have Apps" section of the App Store, except for its alleged exclusion of rival AI apps and inclusion of ChatGPT.
The lawsuit also does not mention any specific allegations about Apple manipulating App Store rankings or any details about the AI chatbot Grok from company X. Furthermore, it does not mention any specific details about Apple's first foldable phone, which is expected to arrive in 2026, or the C2 modem or other expected specs of this device.
This lawsuit marks a significant escalation in Elon Musk's ongoing criticism of Apple's close ties with OpenAI. Earlier this month, Musk warned of legal action, accusing Apple of manipulating App Store rankings in favor of OpenAI. The outcome of this lawsuit could have far-reaching implications for the AI industry and the tech industry as a whole.
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