Elon Musk has launched a lawsuit against Apple and OpenAI, accusing them of creating an anti-competitive environment by embedding ChatGPT directly into iPhones. The case, filed in a Texas federal court by Musk’s companies X and xAI, argues that this partnership unfairly blocks rival AI chatbots from competing on equal terms.
Why xAI Targets ChatGPT’s Smartphone Advantage
Apple’s exclusive deal with OpenAI allows ChatGPT to integrate into Siri and system functions, giving it privileged access to millions of iPhone users. Musk claims this creates a barrier for his AI chatbot, Grok, which requires users to download an app or visit a website. According to the lawsuit, such friction stifles fair competition and gives OpenAI an unfair edge.
App Store Bias Allegations
The lawsuit also accuses Apple’s App Store of boosting ChatGPT’s visibility while suppressing competitors. Musk’s legal team points out that OpenAI already controls around 80% of the AI chatbot market share, and Apple’s partnership cements this dominance. The filing contends that this deal provides OpenAI with valuable user interaction data, further strengthening its market lead.
Apple’s Market Power Under Scrutiny
Apple holds about 65% of the U.S. smartphone market, making its ecosystem vital for AI adoption. The company has long faced criticism and regulatory challenges over its App Store practices. While Apple insists its platform is fair, rivals and regulators argue otherwise. The lawsuit adds to this mounting scrutiny at a time when antitrust investigations are intensifying globally.
Rival Chatbots Still Making Progress
Despite Musk’s claims, rivals like DeepSeek and Perplexity AI have climbed Apple’s App Store charts in recent years. Reports also suggest Apple has explored a potential partnership with Google to bring its Gemini chatbot to iPhones, which could weaken monopoly arguments. Still, Musk maintains that the Apple-OpenAI deal forecloses meaningful competition in generative AI.
Musk vs Altman: The Rivalry Continues
The lawsuit is also the latest flashpoint in Musk’s feud with OpenAI CEO Sam Altman. The two co-founded OpenAI in 2015 but fell out over its direction, with Musk accusing Altman of prioritizing profit over ethics. OpenAI has dismissed Musk’s lawsuit as harassment. Courts will now decide if Apple’s deal constitutes innovation—or illegal anti-competitive behavior.
