Elon Musk has initiated new legal proceedings against Apple and OpenAI, accusing the two technology companies of forming illegal monopolies that hinder competition in the rapidly expanding artificial intelligence sector. The lawsuit, submitted on Monday, claims that Musk’s X Corp. and xAI assert that Apple’s agreement to incorporate ChatGPT into the iPhone via Apple Intelligence restricts opportunities for competitors. The complaint argues that iPhone users are left with “no reason” to explore alternative AI applications as Apple allegedly compels them to utilize ChatGPT as the standard chatbot. Musk contends that this collaboration unfairly marginalizes rivals, including xAI’s Grok chatbot and the X app, by supposedly downgrading their visibility in the App Store rankings.
The lawsuit states, “Apple and OpenAI have secured markets to uphold their monopolies and obstruct innovators like X and xAI from competing.” Earlier this month, Musk threatened Apple with legal action, accusing the company of skewing App Store rankings in favor of OpenAI. He stated, “Apple is acting in a way that makes it impossible for any AI company other than OpenAI to achieve the top position in the App Store, which constitutes a clear antitrust violation.” The lawsuit emphasizes that while X and Grok have reached notable rankings, neither has made it into the App Store’s “Must-Have Apps” category, where ChatGPT was the only AI chatbot listed as of August 24, 2025.
Musk’s companies argue that this situation creates a “moat” for OpenAI, as the integration of ChatGPT grants access to billions of potential user prompts from hundreds of millions of iPhones. In response, OpenAI spokesperson Kayla Wood dismissed the allegations, labeling them as “consistent with Mr. Musk’s ongoing pattern of harassment.” Apple has countered by stating that its store is “designed to be fair and free of bias.”
