Tesla’s founder and Billionaire entrepreneur Elon Musk’s artificial intelligence startup xAI has sued OpenAI, the maker of Apple and ChatGPT in a U.S. federal court in Texas on Monday, for illegally conspiring to thwart competition for artificial intelligence.
According to Reuters, Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing,” the lawsuit said.
Apple, in partnership with OpenAI, has integrated ChatGPT into its operating system for iPhones, iPads, and Macs.
“If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store,” the lawsuit said.
In the lawsuit, xAI said it is seeking billions of dollars in alleged damages.
“This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment,” an OpenAI spokesperson said in a statement reported by Reuters.
Apple is yet to comment on the law suit.
Musk later on Monday, in a post on his social media platform X, echoed the allegations in the lawsuit, writing, “A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists.”
Musk had threatened to sue Cupertino, California-based Apple earlier this month, writing on X that Apple’s behaviour “makes it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
OpenAI’s ChatGPT became the fastest-growing consumer application in history in the months following its launch in late 2022.
Musk’s xAI acquired X in March for $33 billion to enhance its chatbot training capabilities. Musk has also integrated the Grok chatbot into vehicles made by his electric automobile company, Tesla.
xAI was launched less than two years ago and competes with Microsoft-backed OpenAI as well as with Chinese startup DeepSeek.
Musk is separately suing OpenAI and its CEO, Sam Altman, in federal court in California to stop its conversion from a nonprofit to a for-profit business. Musk cofounded OpenAI with Altman in 2015 as a nonprofit.
It is important to note that Apple’s App Store practices have been the focus of multiple lawsuits. In one ongoing case by “Fortnite” video game maker Epic Games, a judge ordered Apple to allow greater competition for app payment options.
