25. August 2025
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Things You Should Know: Elon Musk’s xAI Sues Apple & OpenAI Over App Store Conspiracy
On August 25, 2025, Elon Musk’s AI venture, xAI, backed by X Corp, filed a sweeping antitrust lawsuit in the U.S. District Court (Texas) accusing Apple and OpenAI of colluding to monopolize AI access on Apple devices—putting xAI’s chatbot, Grok, at a major disadvantage.
1. Alleged Exclusive AI Deal
xAI claims Apple gave OpenAI exclusive first-party integration—promoting ChatGPT in Siri and other iOS features—effectively locking out competitors like Grok from reaching users.
2. App Store Ranking Manipulation
The lawsuit alleges Apple unfairly prioritized ChatGPT—placing it prominently in the “Must-Have Apps” section—while Grok was downgraded despite its popularity, effectively suppressing its visibility.
3. xAI’s Case Against Monopoly Behavior
xAI argues that the Apple–OpenAI partnership amounts to monopolistic conduct, denying fair access to billions of user prompts needed for AI model growth and competition.
4. Reactions from OpenAI and Apple
OpenAI dismissed the complaint as part of Musk’s “ongoing pattern of harassment,” while Apple stands by its App Store as “fair and unbiased.”
Key Takeaway: Elon Musk's lawsuit places antitrust showdown amid rising tensions between tech giants. Its outcome could reshape the power dynamics in AI access, app distribution, and fair competition on mobile platforms.