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xAI Sues Apple and OpenAI: Musk's AI Company Alleges Collusion

August 25, 2025
xAI Sues Apple and OpenAI: Musk's AI Company Alleges Collusion

Lawsuit Filed by X and xAI Against Apple and OpenAI

On Monday, legal action was initiated by Elon Musk’s X and xAI against both Apple and OpenAI. The core allegation centers around a purported conspiracy to suppress competitive forces within the artificial intelligence sector.

Allegations of Collusion

The lawsuit asserts that Apple is actively working to maintain its dominance in the smartphone market. This is allegedly being achieved through an alliance with OpenAI, a leading entity in the generative AI chatbot landscape.

According to the legal filing, Apple’s integration of ChatGPT into its systems represents a deliberate effort to hinder innovation and competition in the AI field.

A History of Disputes

This legal challenge represents the latest development in a protracted series of disagreements between Elon Musk and Sam Altman. Public criticisms and disagreements have been exchanged between the two figures.

Musk previously held a founding role at OpenAI, serving as co-founder and co-chair. He has since initiated legal proceedings to prevent OpenAI’s shift to a for-profit organizational structure.

Furthermore, an unsolicited takeover bid of $97.4 billion was submitted by Musk for OpenAI, but was ultimately declined by the company.

Prior Public Accusations

Earlier this month, Musk voiced concerns regarding anticompetitive practices on his platform, X. He specifically claimed that achieving the top ranking in the App Store is unattainable for any AI company other than OpenAI.

Apple and OpenAI’s Partnership

The collaborative agreement between Apple and OpenAI was publicly revealed in June of the previous year. The anticipated rollout of integrated features is scheduled for December.

No Immediate Response

As of yet, neither OpenAI nor Apple have issued an official statement in response to requests for comment regarding the lawsuit.

Key Takeaway: The lawsuit highlights growing tensions within the rapidly evolving AI industry, specifically concerning market dominance and competitive practices.

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