Elon Musk has escalated his battle in the tech sector through a sweeping antitrust lawsuit filed by his companies, including his artificial intelligence startup xAI, against Apple and OpenAI. The complaint, lodged in federal court in Texas on 25 August 2025, accuses both firms of colluding to suppress competition and innovation.
The lawsuit alleged a scheme where Apple gave OpenAI favored treatment via Apple Intelligence integration. This made ChatGPT the default assistant on iPhones and marginalized rival apps such as Grok and Musk-affiliated platform X. The complaint describes Apple as acting to safeguard its smartphone dominance by supporting OpenAI.
According to the filing, Apple exerts control over approximately 65 percent of the United States smartphone market, while OpenAI commands at least 80 percent of the generative chatbot market via its ChatGPT. The lawsuit argues that their cooperation secures overwhelming advantages that prevent emerging firms from gaining equal access to consumers.
The complaint claims that Apple actively suppressed competition through App Store practices. As of 24 August 2025, Grok and the X platform allegedly disappeared from the must-have section of the app marketplace. By contrast, ChatGPT remained prominently displayed, giving it superior visibility and direct consumer engagement.
It also points to the long-term effects of the Apple-OpenAI deal. OpenAI gains billions of user prompts that enhance model training and refinement by securing exclusive integration on iPhones. Firms affiliated with Musk argue that this access further boosts the position of OpenAI while restricting opportunities for alternative artificial intelligence systems.
Musk companies are seeking billions of dollars in damages and a permanent injunction to halt the alleged anti-competitive conduct of the two companies. The lawsuit demands a jury trial, asserting that Apple and OpenAI deliberately engaged in practices designed to restrain trade, eliminate rivals, and maintain market monopolies.
The legal confrontation also carries a personal dimension. Musk was once a co-founder of OpenAI but departed in 2018 after disputes over direction and governance. Since then, his relations with OpenAI leadership have deteriorated into public feuds and multiple lawsuits. This case, therefore, represents both a legal strategy and a continuation of a deeper conflict.
Responses have already emerged from the accused parties. OpenAI dismissed the lawsuit as another effort by Musk to undermine its operations. Apple defended its decisions by stating that App Store rankings and product integrations are guided by fairness and user experience, rather than deliberate discrimination or manipulation.
The case was filed in the Northern District of Texas, a court venue frequently regarded as favorable toward corporate litigants seeking assertive rulings. Legal observers argue that the legal team of Musk deliberately selected this jurisdiction, anticipating procedural benefits and strategic leverage in presenting aggressive antitrust claims directed against Apple and OpenAI.