Elon Musk has reignited his legal battle with OpenAI, filing a fresh lawsuit that accuses the company of anticompetitive practices and collusion with Apple to monopolize the generative AI market. This marks the second major legal action Musk has taken against OpenAI, following his earlier suit in 2024 that challenged the company’s shift from a nonprofit to a for-profit structure. The latest lawsuit, filed in a Texas federal court, adds Apple to the mix and escalates the conflict into a broader antitrust confrontation that could reshape the future of AI integration in consumer technology.
At the heart of Musk’s complaint is the allegation that Apple and OpenAI have entered into an exclusive partnership that unfairly favors ChatGPT on iOS devices. Musk claims that this arrangement effectively locks out competitors like xAI’s Grok chatbot, which he argues has been sidelined in App Store rankings and denied fair visibility. The lawsuit, filed jointly by Musk’s AI startup xAI and his social media platform X, seeks billions of dollars in damages and calls for a jury trial to address what Musk describes as a conspiracy to suppress innovation and consumer choice.
The Apple–OpenAI Alliance
Apple’s partnership with OpenAI, announced in mid-2024, integrated ChatGPT into iPhones, iPads, and Macs as a default AI assistant. This move was widely seen as a strategic leap for Apple into the AI space, leveraging OpenAI’s technology to enhance Siri and other system-level features. However, Musk argues that this integration has come at the expense of competition, claiming that Apple’s decision to feature ChatGPT exclusively has created a closed ecosystem that disadvantages other AI developers.
According to the lawsuit, Apple’s App Store policies and editorial decisions have artificially boosted ChatGPT’s visibility while suppressing rivals like Grok. Musk alleges that Apple has manipulated rankings and delayed updates to Grok, making it harder for users to discover or switch to alternative AI chatbots. The complaint also points to Apple’s refusal to feature Grok in curated lists, despite its high user ratings and download numbers.
Musk’s legal team argues that this behavior constitutes an unlawful tying arrangement, where Apple’s dominance in the smartphone market is used to reinforce OpenAI’s dominance in the AI chatbot space. The lawsuit claims that Apple controls over 65 percent of the US smartphone market, while OpenAI commands more than 80 percent of the generative AI chatbot market through ChatGPT. By combining their market power, the two companies are accused of stifling competition and violating antitrust laws.
Musk’s Broader Grievances
This lawsuit is not Musk’s first clash with OpenAI. In 2024, he filed a separate suit against the company and its CEO Sam Altman, accusing them of abandoning OpenAI’s original mission as a nonprofit research lab dedicated to public benefit. Musk, who co-founded OpenAI in 2015, has long criticized the organization’s pivot toward commercialization and its partnership with Microsoft.
The earlier lawsuit, which is scheduled for trial in March 2026, centers on Musk’s claim that OpenAI breached its founding principles by prioritizing profit over safety and transparency. He argues that the company’s decision to license its technology to Microsoft and integrate it into consumer products like ChatGPT has compromised its ethical obligations and created a dangerous concentration of power in the AI sector.
The new lawsuit builds on these concerns, portraying OpenAI as a profit-driven entity that has aligned itself with Apple to dominate the AI landscape. Musk’s complaint describes the Apple–OpenAI alliance as a calculated move to maintain control over billions of user prompts and data, effectively locking out competitors and reducing consumer choice.
Industry Reactions and Implications
OpenAI has responded to the lawsuit by dismissing Musk’s claims as part of a broader pattern of harassment. A spokesperson for the company stated that the allegations are consistent with Musk’s ongoing efforts to undermine OpenAI and promote his own ventures. Apple, on the other hand, has not issued an official response, though past statements suggest the company views its App Store policies as fair and designed to balance user safety with developer opportunity.
Legal experts are watching the case closely, as it could set important precedents for how courts define market boundaries in the AI space. One of the key questions is whether AI chatbots constitute a distinct market and whether Apple’s integration of ChatGPT amounts to monopolistic behavior. If the court sides with Musk, it could force Apple to open its ecosystem to more AI providers and potentially reshape how AI assistants are distributed on mobile platforms.
The lawsuit also raises broader questions about the role of AI in consumer technology and the responsibilities of tech giants in fostering competition. As AI becomes increasingly embedded in smartphones, laptops, and other devices, the choices made by companies like Apple and OpenAI will have far-reaching consequences for innovation, privacy, and user autonomy.
Musk’s Strategic Positioning
Musk’s legal offensive is not just about competition—it’s also a strategic move to elevate his own AI ventures. xAI, launched in 2023, has positioned itself as a challenger to OpenAI, with Grok serving as its flagship chatbot. Musk has integrated Grok into Tesla vehicles and the X platform, aiming to create a seamless AI experience across his ecosystem.
By suing Apple and OpenAI, Musk is drawing attention to what he sees as unfair barriers to entry and leveraging the legal system to push for greater openness in the AI market. His goal is not only to win damages but also to force structural changes that would allow Grok and other competitors to gain equal footing.
The lawsuit also aligns with Musk’s broader vision of building a “super app” through X, combining social media, payments, AI, and more into a unified platform. He has argued that Apple’s closed ecosystem and preferential treatment of ChatGPT hinder the development of such apps, limiting innovation and consumer choice.
What Comes Next
The legal proceedings are expected to unfold over the coming months, with both sides preparing for a high-stakes courtroom battle. If the case goes to trial, it could expose internal details about Apple’s partnership with OpenAI and shed light on how App Store rankings and integrations are managed.
For consumers, the outcome could influence how AI assistants are presented and accessed on smartphones. A ruling in Musk’s favor might lead to more diverse AI options on iOS devices and greater transparency in app store practices. For developers, it could open the door to fairer competition and reduce the dominance of a few key players.
Regardless of the verdict, the lawsuit underscores the growing tensions in the AI industry and the challenges of balancing innovation with fair competition. As AI continues to evolve, legal frameworks will play a crucial role in shaping its trajectory and ensuring that the benefits of this transformative technology are widely shared.
