Elon Musk’s xAI Sues Apple and OpenAI Over ChatGPT and App Store Monopolies

TL;DR

• Elon Musk’s X Corp and the AI unit xAI filed a lawsuit against Apple and OpenAI, accusing them of maintaining illegal monopolies via ChatGPT integration on iPhone and through the App Store. The Verge
• The suit argues that Apple Store deprioritizes rival chatbots and “super” apps (including Grok and X), and that iPhone users are effectively forced to use ChatGPT as the default chatbot when enabling Apple Intelligence. The Verge
• It contends that Apple’s partnership with OpenAI creates a “moat” protecting OpenAI due to Apple’s smartphone monopoly, and that OpenAI could access billions of user prompts from iPhone users. The Verge
• Apple says the App Store is designed to be fair and free of bias, and OpenAI characterizes the lawsuit as harassment; the filing follows Musk’s earlier threat to act over alleged ranking rigging in favor of OpenAI. The Verge
• The case centers on competition in the AI app ecosystem and potential consequences for developers seeking access to iPhone users’ AI interactions. The Verge

Context and background

The filing reflects a continuing confrontation around how major platform owners influence competition in AI software. Musk has repeatedly flagged concerns about the alignment between Apple’s platform policies and OpenAI’s dominance in AI services, arguing that agreements to embed ChatGPT in iPhone software could distort the market. The lawsuit cites the iPhone as a vehicle for OpenAI’s access to a vast stream of user prompts, which the plaintiffs claim could unfairly advantage OpenAI over independent AI developers. In the period leading up to the filing, Musk had publicly charged that Apple was manipulating App Store rankings to favor OpenAI, and he asserted that Apple’s actions could obstruct non-OpenAI AI companies from gaining visibility on iOS devices. The Verge The suit notes that although X and Grok apps have achieved high rankings on the App Store, they are not included in the store’s “Must-Have Apps” section, where ChatGPT appeared as the only AI chatbot in August 2025. The argument is that the distinct treatment of apps in the App Store creates unequal access to consumer attention and potentially locks in a monopoly-like position for OpenAI. The Verge The plaintiffs also attach importance to the broader ecosystem dynamics created by Apple’s collaboration with OpenAI, suggesting that the partnership contributes to a strategic moat around OpenAI given Apple’s dominance in mobile hardware and software distribution. The defense has framed the Store as fair and impartial and has suggested that the suit is part of a broader pattern of dispute between the parties. The Verge

What’s new

• A lawsuit filed by the Musk-owned X Corp. and xAI alleges that Apple and OpenAI are maintaining illegal monopolies by tying ChatGPT to iPhone software and by leveraging the App Store to advantage OpenAI over competitors. The Verge
• The filing asserts that Apple’s App Store deprioritizes rival chatbots and “super” apps, and that iPhone users are effectively steered toward ChatGPT as the default chatbot when enabling Apple Intelligence. The Verge
• The suit contends that OpenAI gains a competitive edge from the Apple partnership by accessing a large volume of prompts from hundreds of millions of iPhone users, creating a market moat. The Verge
• Apple maintains that its App Store is designed to be fair and free of bias; OpenAI spokesperson Kayla Wood described the filing as harassment in responses to press inquiries. The Verge

Why it matters (impact for developers/enterprises)

• The lawsuit highlights potential antitrust concerns around bundled AI offerings on major mobile platforms, and how default settings and ranking systems in app stores can influence developer reach and user adoption. If the claims were to influence policy or enforcement, developers building AI apps for iOS could see changes in how apps are indexed, ranked, or surfaced in search and recommendation systems. The Verge
• For enterprises and startups building AI-powered products, the case raises questions about the competitive landscape when a single platform partner (Apple) collaborates with a dominant AI provider (OpenAI). The outcome could affect how developers approach platform partnerships, app distribution strategies, and compliance considerations for integrating AI services on iOS devices. The Verge
• The allegations underscore ongoing scrutiny of app store practices and how they may shape competition among AI chatbots and related AI-enabled apps, potentially affecting monetization models, discoverability, and user choice. The Verge

Technical details or Implementation

• The core assertion is that iPhone users are steered toward ChatGPT by design through Apple Intelligence, with the alleged effect of locking in a dominant AI provider via default configurations. The suit argues that OpenAI could receive billions of user prompts from iPhone users, which proponents say would disproportionately assist OpenAI’s model and business operations. The Verge
• The App Store’s treatment of apps is highlighted, noting that even though X and Grok have widely ranked, they were not included in the Must-Have Apps list at a time when ChatGPT was singled out, raising questions about selection criteria and competitive fairness. The Verge
• Apple’s official position emphasizes fairness and lack of bias in the store, while OpenAI has characterized the lawsuit as harassment in public statements. The contrast between these statements is part of the broader public dialogue around how platform governance intersects with AI ecosystems. The Verge

Key takeaways

• X Corp. and xAI argue that the coupling of ChatGPT with iPhone software and the App Store constitutes an illegal monopoly and harms competition. The Verge
• Deprioritization claims center on rival AI apps and the designation of must-have status in the App Store, potentially limiting visibility for competitors. The Verge
• The lawsuit references the Apple OpenAI partnership as creating a competitive moat, tying access to user prompts to OpenAI’s advantage, an issue that could influence how platform and AI partnerships are viewed from an antitrust perspective. The Verge
• Apple defends its App Store as fair and unbiased, while OpenAI describes the filing as harassment, underscoring ongoing tensions between platform governance and AI providers. The Verge

References

• https://www.theverge.com/news/765171/elon-musk-apple-openai-antitrust-lawsuit