Legal Face-Off: xAI Takes on Apple and OpenAI Over AI Monopoly Allegations

Elon Musk's xAI is suing Apple and OpenAI, alleging they conspired to maintain AI market monopolies. The legal battle accuses them of stymieing competition on platforms like the Apple App Store. xAI's complaint adds to ongoing scrutiny over Apple's practices and Musk's personal disputes with OpenAI.


Devdiscourse News Desk | Updated: 25-08-2025 20:58 IST | Created: 25-08-2025 20:58 IST
Legal Face-Off: xAI Takes on Apple and OpenAI Over AI Monopoly Allegations
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Elon Musk's artificial intelligence firm xAI has initiated legal proceedings against tech giants Apple and OpenAI, accusing them of market conspiracy. Filed in a Texas federal court, the lawsuit alleges the companies have colluded to suppress competition in the burgeoning AI industry.

The lawsuit claims that Apple and OpenAI's collaborative efforts have sabotaged xAI's products, notably in the Apple App Store. xAI argues that Apple's exclusive agreement with OpenAI has hindered the visibility of its apps, including the X app and Grok app.

This suit adds to Musk's broader legal tussles, as he also challenges OpenAI's transition from nonprofit to for-profit status in a separate Californian legal case. The case underscores increasing scrutiny on Apple's App Store dominance, contributing to broader debates about competition in the high-tech industry.

(With inputs from agencies.)

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