Elon Musk's xAI Sues Apple and OpenAI, Alleging ChatGPT Monopoly on iPhones

Musk's Bold Accusation: A Monopoly in the Making?

Elon Musk, the enigmatic tech titan, has officially escalated his public feud with Apple and OpenAI, filing a lawsuit through his artificial intelligence venture, xAI. The core of the complaint? An alleged conspiracy designed to stifle competition and solidify ChatGPT's dominance on the iPhone. Musk’s xAI asserts that the exclusive deal between Apple and OpenAI effectively sidelines other AI applications, creating an uneven playing field and hindering the success of innovative alternatives like xAI’s own Grok.

The Grievance: Limited Choices for iPhone Users

At the heart of the lawsuit lies the assertion that Apple's integration of ChatGPT into its flagship devices has rendered it the sole generative AI chatbot accessible to iPhone users for crucial tasks. This, according to the complaint, leaves users with no viable alternative if they wish to leverage cutting-edge AI on their phones, forcing them to use ChatGPT even if they harbor a preference for other, potentially more advanced or creative solutions such as Grok. This restriction, xAI argues, directly impedes fair market competition.

Beyond Integration: Allegations of App Store Manipulation

The legal action doesn't stop at the initial integration. xAI’s complaint further accuses Apple of actively diminishing the visibility of competing AI applications within the App Store. This alleged sabotage reportedly includes downranking these apps in search results and imposing undue delays on the crucial vetting process required for them to be accepted onto the platform. While xAI points to App Store rankings and press articles as evidence, 9to5Mac notes that this might represent a rather fragile foundation for such a significant legal challenge.

The Real Motivation? Grok's Stumbling Start

It appears that Musk's frustration might stem from recent performance metrics. Despite launching new features and offering free access to Grok 4, xAI’s application has struggled to gain traction, languishing in fifth place overall and second in the “Productivity” category on the App Store. The fact that the app wasn't even prominently featured upon its global release likely fueled Musk's ire, prompting this aggressive legal maneuver. This situation paints a picture of a challenger feeling unfairly obstructed.

Apple's Defense: A Fair and Open Ecosystem?

Apple, for its part, has previously defended its App Store practices. In response to Musk's earlier public criticisms, the company maintained that the App Store operates with fairness and impartiality. They highlighted their diverse recommendation systems, including charts, algorithmic suggestions, and curated lists compiled by experts, all based on objective criteria. Apple’s stated goal is to foster a secure environment for users to discover new applications while providing valuable opportunities for developers, emphasizing collaboration to boost app visibility in rapidly evolving sectors.

A Shifting Landscape: The Evolving AI Integration in iOS

The lawsuit, however, appears to overlook the dynamic nature of AI integration in the mobile ecosystem. It’s worth noting that earlier this year, the DeepSeek app actually reached the top spot in the App Store. Furthermore, Apple has consistently signaled its openness to incorporating a wider array of AI technologies. At WWDC 2024, Craig Federighi, Apple's senior vice president of software engineering, indicated that the company is actively exploring the integration of other AI models, including Google’s Gemini. Moreover, at WWDC 2025, Apple unveiled a new version of its Xcode coding application, explicitly designed to support integration with various AI products, including those from Anthropic, alongside the already established ChatGPT.