Elon Musk's xAI Sues Tech Giants in Antitrust Clash Over AI Monopolies

Elon Musk’s xAI has filed an antitrust lawsuit against Apple and OpenAI, accusing them of conspiring to stifle competition in AI markets. The suit claims Apple partnered with OpenAI for monopolistic gain, limiting market access for competitors like xAI. The case could influence future AI antitrust rulings.


Devdiscourse News Desk | Updated: 25-08-2025 23:14 IST | Created: 25-08-2025 23:14 IST
Elon Musk's xAI Sues Tech Giants in Antitrust Clash Over AI Monopolies
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In a dramatic turn in the tech industry's ongoing power struggles, Elon Musk's artificial intelligence startup xAI has launched an antitrust lawsuit against Apple and OpenAI. Filed in U.S. federal court in Texas, the lawsuit accuses the two giants of conspiring to maintain monopolistic dominance over AI markets, effectively sidelining competition.

The suit argues that Apple, through an exclusive deal with OpenAI, has unfairly integrated ChatGPT into its operating systems, thereby restricting the visibility of competing apps such as X and Grok on its App Store. This collaboration, according to xAI, prevents other AI developers from securing a hold in the rapidly expanding marketplace.

The case, viewed by legal experts, stands to significantly impact how courts interpret market dominance and competition within the AI sector. Furthermore, Elon Musk's lawsuit against OpenAI for its shift from nonprofit to for-profit status adds another layer of complexity to his ongoing legal battles, encompassing both competitive and ethical dimensions.

(With inputs from agencies.)

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