Elon Musk sues Apple and OpenAI for unfair competition

Tesla and SpaceX boss accuses Apple and OpenAI of creating a monopoly in mobile AI by integrating ChatGPT into iPhones, arguing that the deal stifles competition and penalizes rival apps like Grok and X

Elon Musk has filed a lawsuit against Apple and OpenAI, accusing them of colluding that would undermine competition in the artificial intelligence industry. The lawsuit, filed Monday by X Corp. and xAI, alleges that the integration of ChatGPT into iPhones through the Apple Intelligence Platform is creating an insurmountable barrier for other providers, including Musk's own products like Grok and X.

According to the document, iPhone users would have "no reason" to download alternative chatbots, as Apple "forces" the use of ChatGPT as the default app. The agreement with OpenAI, according to Musk, would allow the two companies to "lock down markets, maintain a monopoly, and exclude innovators like X and xAI from competition."

The accusations aren't limited to the chatbot's native integration. Musk also takes issue with the App Store's operation, accusing Apple of systematically "downgrading" rival apps in the rankings and excluding Grok and X from the "Must-Have Apps" section, where ChatGPT was listed as the "only" AI chatbot on August 24. Earlier this month, the Tesla founder had threatened legal action, claiming that Apple had manipulated internal rankings "to make it impossible for any AI company other than OpenAI to reach the top spot."

The complaint also highlights how Apple's dominant position in the smartphone market creates a "moat" for OpenAI, which, thanks to direct integration on the iPhone, would have access to "billions of prompts generated by hundreds of millions of devices," thus securing a competitive advantage that is difficult to overcome. The legal battle could become a new battleground in an already tense industry, as the adoption of artificial intelligence in smartphones prepares to reshape market dynamics and control over end users.