xAI and X Accuse Apple, OpenAI of Collusion in New Federal Lawsuit
On August 25, 2025, Elon Musk’s AI startup xAI and his social media platform X filed a lawsuit in a Texas federal court against Apple and OpenAI, accusing them of colluding to stifle competition by manipulating App Store rankings. The suit claims Apple has systematically favored OpenAI’s ChatGPT integration—part of Apple Intelligence and Siri—over xAI’s Grok chatbot, preventing it from rising in the App Store’s charts despite its popularity. The lawsuit alleges this constitutes an anticompetitive scheme that entrenches Apple and OpenAI’s dominance and causes billions in damages to xAI and X. The legal move is the latest escalation in Musk’s long-standing public feud with Apple and its CEO, Tim Cook. Musk has repeatedly criticized Apple’s products, calling them uninnovative and lacking the “mind-blowing” impact of Tesla vehicles. His criticisms date back to 2015, when he jokingly referred to Apple as the “Tesla Graveyard,” suggesting it hired Tesla’s rejects. Over the years, Musk has mocked Apple’s product strategy, questioned its innovation, and even hinted at creating a rival smartphone if Apple ever removed Twitter from the App Store—a threat he reiterated after Apple’s 2022 decision to end Twitter’s ad partnership. The tension intensified after Apple announced its partnership with OpenAI in 2024, integrating ChatGPT into Apple Intelligence and Siri. Musk has since claimed Apple’s App Store algorithms are biased, citing Grok’s failure to appear on the “Now Trending” list and its inability to reach the top rankings. He argues that Apple’s algorithmic curation, combined with editorial oversight, is not neutral and instead serves to promote OpenAI’s interests. Apple denies the allegations, stating its App Store rankings are based on a mix of algorithmic data and independent editorial judgment. The company points out that other AI apps, including China’s DeepSeek, have reached the top of the charts, undermining claims of systematic bias. Apple also emphasizes that its platform is designed to be fair and free of favoritism. Musk has provided no concrete evidence to support his claims, but the lawsuit reflects a broader pattern of public attacks and legal challenges. He has previously sued OpenAI, accusing it of straying from its original mission, and has accused Apple of anti-competitive behavior, including high App Store fees. In 2022, he even threatened to build his own iPhone if Apple cut Twitter off the App Store. The legal battle underscores the growing clash between tech titans over market control, innovation, and algorithmic transparency. While Musk positions himself as a champion of free speech and open competition, his actions—especially through X and xAI—have drawn scrutiny for their own manipulative tactics, including algorithmic manipulation on Twitter/X to promote his messaging and suppress dissent. Despite Apple’s rebuttals and the lack of evidence in the current suit, the case could have far-reaching implications for how app marketplaces operate and how AI partnerships are regulated. It also highlights the fragility of digital ecosystems where platform power, algorithmic control, and corporate alliances shape the fate of emerging technologies. Whether the court sees this as a legitimate antitrust issue or a publicity stunt remains to be seen, but the feud between Musk and Apple is far from over.
