Elon Musk’s xAI Files Lawsuit Against Apple and OpenAI Over App Store Favoritism

Satyendu Mohapatra
Logos of Apple and xAI

In a significant escalation of tensions between tech giants, Elon Musk’s companies—xAI and X (formerly Twitter)—have filed an antitrust lawsuit against Apple and OpenAI. The suit, lodged in a Texas federal court, accuses both companies of colluding to stifle competition in the generative AI and smartphone markets. The suit accuses Apple of rigging its App Store to boost OpenAI’s ChatGPT at the expense of competitors like xAI’s Grok chatbot.

The complaint alleges that Apple and OpenAI have formed an anticompetitive alliance. Specifically, it points to Apple’s integration of ChatGPT into iOS features like Siri and Apple Intelligence, announced in 2024. This partnership, according to xAI, gives OpenAI an unfair edge by embedding its technology directly into Apple’s devices, while suppressing competitors through manipulated App Store rankings.

The dispute began earlier this month, when Musk publicly accused Apple of rigging its App Store rankings. He pointed out that despite Grok’s strong performance—ranking fifth in overall downloads— it was notably absent from Apple’s curated “Must Have” lists. Apple’s partnership with OpenAI, announced in 2024, allows ChatGPT to power advanced Siri capabilities in iOS 18 and beyond. Celebrated as a major advance for Apple’s AI capabilities, the integration has nonetheless faced criticism for potentially shutting out competing apps.

Apple has firmly rejected the accusations, stating that its App Store is “designed to be free and fair of bias.” The company emphasizes that rankings are based on objective factors like downloads, user ratings, and engagement, not favoritism. OpenAI, meanwhile, has dismissed the lawsuit as “harassment,” suggesting it’s more about Musk’s personal grievances than genuine competitive harm.

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