War at the Top of Big Tech: Musk Sues Apple and OpenAI, Seeking Billions in Damages

Apple and OpenAI " locked down markets to maintain their monopolies and prevent innovators like X and xAI from competing," Reuters quotes xAI's lawsuit as saying.

Apple, in collaboration with OpenAI, has integrated ChatGPT into its operating system for iPhones, iPads, and Macs.

"Were it not for the exclusivity agreement with OpenAI, Apple would have no reason to refrain from more prominently featuring the X and Grok apps in its App Store," the lawsuit states.

Musk accuses Apple of crippling the App Store on AI

In the lawsuit, xAI said it is seeking billions of dollars in damages.

“This latest report is consistent with an ongoing pattern of harassment by Mr. Musk,” an OpenAI spokesperson said in a statement.

Musk threatened to sue Apple earlier this month, writing in a post on his social media platform X that the company's behavior "makes it impossible for any AI company other than OpenAI to reach the number one spot in the App Store."

The great race for dominance in artificial intelligence is underway

OpenAI's ChatGPT became the fastest-growing consumer app in history in the months following its launch in late 2022.

Musk's xAI acquired X Platform in March for $33 billion to improve its chatbot training capabilities. The billionaire has also integrated the Grok chatbot into electric vehicles manufactured by Tesla, also his company .

xAI was launched less than two years ago and competes with Microsoft-backed OpenAI as well as Chinese startup DeepSeek.

Antitrust experts not involved in the lawsuit said Apple's dominant position in the smartphone market could bolster xAI's claims that the company is illegally tying iPhone sales to OpenAI's ChatGPT platform .

However, they said Apple could respond that partnering with OpenAI was a business decision in a competitive environment and that it has no obligation to help rivals gain market share.

According to Herbert Hovenkamp, ​​a lecturer at the University of Pennsylvania Law School, Apple could also argue that there are security or operational reasons for integrating AI into its operating system, Herbert said.

Looking at the case from a broader perspective, the lawsuit could give U.S. courts the first opportunity to assess whether a defined market for artificial intelligence exists and what it encompasses, a priority issue in antitrust litigation.

“This is the canary in the coal mine in terms of how courts will treat artificial intelligence and antitrust law,” said Christine Bartholomew, a professor at the University at Buffalo School of Law.

Musk is separately suing OpenAI and its CEO Sam Altman in a California federal court to stop the nonprofit from converting to a for-profit organization. Musk co-founded OpenAI with Sam Altman in 2015 as a nonprofit.

Apple's App Store practices have been the subject of numerous lawsuits . In one ongoing case, involving "Fortnite" video game maker Epic Games, a judge ordered the company to allow more competition in in-app payment methods.