The complaint alleges that Apple’s recent partnership with OpenAI — which brought ChatGPT integration to iPhones, iPads, and Macs — amounts to an illegal agreement that locks rivals like xAI out of key markets. By embedding OpenAI’s technology into its operating systems, xAI argues, Apple is unfairly maintaining its dominance while sidelining competitors.
“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 states. xAI is seeking billions of dollars in damages.
OpenAI dismissed the filing as part of what it called Musk’s “ongoing pattern of harassment,” while Apple has yet to issue a response. Musk had previously threatened legal action, accusing Apple of making it “impossible for any AI company besides OpenAI to reach #1 in the App Store.”
The case marks the latest escalation in Musk’s battle with OpenAI, a company he co-founded in 2015 as a nonprofit before its transition to a for-profit model. He is already pursuing a separate lawsuit against OpenAI and CEO Sam Altman in California, challenging that shift.
Legal experts say the Texas case could become a test of how courts define competition in the AI sector. Christine Bartholomew, a professor at the University at Buffalo School of Law, described it as “a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.”
Some analysts believe xAI’s argument could gain traction because of Apple’s dominant role in the smartphone market and its history of antitrust disputes, including an ongoing case brought by Fortnite maker Epic Games over App Store payment rules. Others note Apple may defend its partnership with OpenAI as a strategic business choice made in a highly competitive environment — one that also raises operational and security considerations.
Founded less than two years ago, xAI has emerged as one of the most high-profile challengers to OpenAI, alongside Chinese startup DeepSeek. Musk has integrated xAI’s Grok chatbot into Tesla vehicles and acquired his social media platform X for $33 billion earlier this year to boost the training of his AI models.
With ChatGPT having become the fastest-growing consumer app in history, the lawsuit underscores the increasingly high stakes in artificial intelligence — not only in technology and business, but now in the courtroom.