Two weeks ago, Elon Musk threatened to sue Apple over the low App Store rankings for its AI chatbot Grok, which comes from his AI startup xAI. Now, it looks like a lawsuit has actually been lobbed at Apple and OpenAI.
xAI filed a lawsuit against Apple and OpenAI in U.S. federal court in Texas today, accusing them of colluding to block competition in the AI market, Reuters reports.
The complaint alleges that Apple and OpenAI have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” xAI company claims the two worked together to suppress its products on the App Store, including the X app and the Grok chatbot.
xAI argued that Apple’s deal with OpenAI prevented fair visibility for its apps, saying, “If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store.”
Musk has recently voiced frustration over Apple’s partnership with OpenAI, which integrated ChatGPT into iPhones, iPads and Macs. Earlier this month, he said on his platform X that Apple’s actions “make it impossible for any AI company besides OpenAI to reach #1 in the App Store.”
xAI launched less than two years ago and competes against Microsoft-backed OpenAI and Chinese startup DeepSeek. Grok is already integrated into Tesla vehicles and previously acquired X for $33 billion to support xAI’s chatbot training.
After Musk slammed the App Store rankings, Apple responded to say the App Store is “fair and free”.
Musk is already suing OpenAI and its CEO Sam Altman in California, arguing the company abandoned its nonprofit mission. Apple recently faced ongoing antitrust challenges over its App Store, including a high-profile case with Fortnite maker Epic Games, where it had to let the game back in and allow players alternate payments.
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