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Musk’s xAI Sues Apple and OpenAI Over App Store Practices

Elon Musk xAI OpenAI Apple ChatGPT Groak Monopoly AI Lawsuit Competition
August 25, 2025
Source: Wired AI
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Article Summary

xAI, Elon Musk’s artificial intelligence firm, initiated a lawsuit against Apple and OpenAI, accusing them of engaging in anti-competitive practices within the App Store ecosystem. The lawsuit centers on Apple’s alleged preferential treatment of OpenAI’s ChatGPT and Google’s Gemini, citing Apple’s reduced visibility for xAI’s ‘Grok’ chatbot, which is currently ranked third in the App Store’s free productivity app category. The lawsuit claims Apple actively deprioritized Grok, particularly following its integration into the iOS operating system. xAI argues that this created an unfair advantage for OpenAI and hindered its ability to compete effectively. The legal action highlights a growing tension between established tech giants and emerging AI startups. The core of the complaint revolves around the perception that Apple's actions are deliberately designed to maintain dominance, stifling innovation and limiting consumer options. Notably, this isn't the first legal challenge xAI has posed, reflecting Musk’s ongoing criticism of OpenAI’s direction.

Key Points

  • xAI is suing Apple and OpenAI, alleging monopolistic behavior within the App Store.
  • The lawsuit claims Apple deprioritized xAI’s ‘Grok’ chatbot, limiting its visibility compared to ChatGPT.
  • xAI contends that Apple’s actions stifle innovation and reduce consumer choice within the AI chatbot market.

Why It Matters

This lawsuit is significant because it represents a direct challenge to the power and influence of tech giants like Apple and OpenAI. It raises fundamental questions about competition in the rapidly evolving AI landscape and the potential for established companies to unfairly disadvantage new entrants. The battle over control within the App Store, a critical gateway for AI applications, has far-reaching implications for consumer choice, innovation, and the overall trajectory of the AI industry. The move underscores Musk's persistent frustration with OpenAI’s shifting priorities and the company’s continued dominance.

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