Musk’s xAI Files Lawsuit Against OpenAI, Apple Over Unfair AI Competition Tactics

Elon Musk’s AI company, xAI, has filed a lawsuit against OpenAI and Apple. The complaint accuses the two tech giants of colluding to block fair competition in the rapidly growing AI industry. 

According to the filing, OpenAI and Apple have formed an arrangement that unfairly locks up the market, making it difficult for rivals such as xAI to compete. The lawsuit claims Apple has deliberately limited visibility of Musk’s products, including the X app and the Grok chatbot, in its App Store. xAI argues that without its exclusive partnership with OpenAI, Apple would have no reason to sideline the other apps. 

Musk publicly threatened legal action against Apple earlier this month, stating on X that the company’s conduct leaves no room for other AI developers to reach the top of the App Store rankings. He insisted Apple’s favoritism toward OpenAI blocks genuine competition. 

Sam Altman, CEO of OpenAI, pushed back on Musk’s criticism. In a response posted on X, Altman noted the irony of Musk’s allegations, suggesting that Musk himself has been accused of manipulating his platform to advance his own interests while disadvantaging rivals. 

Apple has already integrated OpenAI’s ChatGPT into core products such as Mac computers, iPhones, and iPads, strengthening their collaboration. Apple also continues to dominate the smartphone sector, holding roughly 65 percent of the market. 

Musk has been positioning xAI as a challenger in the AI field. Earlier this year, the company acquired X for $33 billion, using it to improve chatbot training. His AI system Grok has also been integrated into Tesla vehicles, blending with Musk’s other business ventures. 

Despite being less than two years old, xAI is positioning itself as a competitor to OpenAI, Microsoft, and newer players such as China-based DeepSeek. 

The billionaire also has a reputation for taking his rivals to court. In the past, he targeted large corporations like Nestlé and Lego after they withdrew advertising from X. 

Separate from the current case, Musk is already suing OpenAI and Sam Altman in California, aiming to reverse the company’s shift from a nonprofit organization, which Musk helped co-found in 2015, into a profit-oriented business. 

Apple itself has faced repeated legal challenges about how it runs the App Store. Epic Games, the creator of “Fortnite,” has an ongoing lawsuit arguing that Apple unfairly restricts payment options. A federal judge in that case already ordered Apple to allow broader competition. 

As the AI race gathers steam, more conflicts between the leading players are likely to emerge as they jostle for dominance. For tech companies like D-Wave Quantum Inc. (NYSE: QBTS) operating in the quantum computing vertical, valuable lessons could be picked on how to promote their solutions without finding themselves embroiled in avoidable legal battles. 

NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS 

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