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Elon Musk sues Apple and OpenAI, alleges iPhone-ChatGPT deal crushes AI competition

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Elon Musk has officially taken legal action against Apple and OpenAI.

In a lawsuit, Musk’s companies X Corp. and xAI claimed that Apple’s partnership with OpenAI gives ChatGPT an unfair edge over other AI apps.

The issue lies in how Apple has integrated ChatGPT into iPhones through its Apple Intelligence system.

Elon Musk sues Apple and OpenAI, alleges iPhone-ChatGPT deal crushes AI competition

Elon Musk has officially taken legal action against Apple and OpenAI, accusing the two companies of unfairly blocking competition in the fast-growing AI industry. In a lawsuit, Musk’s companies X Corp. and xAI claimed that Apple’s partnership with OpenAI gives ChatGPT an unfair edge over other AI apps.

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The issue lies in how Apple has integrated ChatGPT into iPhones through its Apple Intelligence system. Musk’s companies argue that this setup leaves users with “no reason” to download rival AI apps, as Apple “force[s]” iPhone owners to use ChatGPT by default once they turn on Apple Intelligence. The lawsuit states, “Apple and OpenAI have locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.”

Musk has been vocal about his criticism of Apple’s close ties with OpenAI. Earlier this month, he warned of legal action, accusing Apple of manipulating App Store rankings in favour of OpenAI. “Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation,” he said at the time.

Also read: Apple sues ex-employee for allegedly leaking Apple Watch secrets to Oppo

The lawsuit also points to Apple’s “Must-Have Apps” section in the App Store. It claims that even though X and its AI chatbot Grok achieved strong rankings, neither appeared in this curated section. Instead, as of August 24, 2025, ChatGPT was allegedly the “only” AI chatbot featured there. 

The lawsuit also argues that by giving ChatGPT direct integration into iPhones, Apple provides OpenAI with access to “potentially billions of user prompts originating from hundreds of millions of iPhones,” which gives OpenAI an unfair advantage.

Also read: Apple’s first foldable phone may arrive in 2026: Four cameras, C2 modem and other expected specs

OpenAI, however, has dismissed the lawsuit. “This latest filing is consistent with Mr Musk’s ongoing pattern of harassment,” OpenAI spokesperson Kayla Wood told The Verge. Meanwhile, Apple previously defended its App Store policies, telling Bloomberg that its store is “designed to be fair and free of bias.”

Ayushi Jain

Ayushi Jain

Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile

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