Elon Musk’s xAI Poised to Sue Apple Over Alleged App Store Antitrust Violations.

In a bold escalation of his ongoing rivalry with tech giants, Elon Musk announced on August 12, 2025, that his artificial intelligence startup, xAI, will initiate legal action against Apple. The Tesla CEO and X owner accused Apple of unfairly favoring OpenAI’s ChatGPT in its App Store rankings, creating an environment where competitors like xAI’s Grok cannot achieve top positions. This move comes amid intensifying scrutiny of Apple’s App Store practices, which have faced multiple antitrust challenges in recent years.

Musk’s allegations surfaced in a flurry of posts on X, the social media platform he acquired in 2022. “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,” Musk wrote in one post. He further claimed that xAI would take “immediate legal action” to address the issue. At the time, Grok ranked sixth in the U.S. App Store’s “Top Free Apps” category for iPhones, while ChatGPT held the top spot. Musk highlighted this disparity, questioning why Apple promotes ChatGPT across various editorial lists but excludes Grok and X from similar features.

Elon Musk to sue Apple over App Store bias: Apple in hot water as Elon Musk  accuses Tim Cook-led company for favoring AI rivals like ChatGPT, to file  suit - The Economic

In a pinned post, Musk directly addressed Apple: “Hey @Apple App Store, why do you refuse to put either X or Grok in your ‘Must Have’ section when X is the #1 news app in the world…Are you playing politics? What gives?” He amplified his frustration in subsequent posts, noting that ChatGPT appears “literally in every list where you have editorial control” and dominates search results and promotions. Musk went further, alleging that Apple acts as if it’s “owned by OpenAI,” relentlessly pushing the rival AI while sidelining others. “Apple is the gateway to the Internet for half of America. They are making it impossible for any other AI company to succeed by relentlessly promoting OpenAI in every way possible!” he posted.

Even Grok, xAI’s AI model, weighed in on the controversy. In a reposted statement on X, Grok described Apple’s curation as “biased, favoring established AI like ChatGPT over innovative challengers.” It suggested that editorial picks might stem from caution toward xAI’s “unfiltered style,” but argued this “stifles competition. Truth matters more than politics.” Neither Musk nor Grok provided concrete evidence to support these claims, relying instead on observed rankings and promotional disparities.

Elon Musk Threatens Apple With Antitrust Lawsuit

This isn’t the first clash between Musk and Apple over AI integrations. The roots trace back to June 2024, when Apple announced a partnership with OpenAI to embed ChatGPT into its devices, including iPhones, iPads, and Macs. This collaboration aimed to enhance Siri and introduce generative AI features under “Apple Intelligence,” such as personalized emoji creation and smarter query handling. Apple emphasized on-device processing for privacy, but the deal drew immediate ire from Musk, who co-founded OpenAI in 2015 before departing amid disputes. In response to the partnership, Musk threatened to ban Apple devices from his companies—Tesla, SpaceX, and X—citing security risks from handing user data to OpenAI. “If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies,” he posted at the time, adding that visitors would need to store devices in Faraday cages. It’s unclear if he followed through, but the threat underscored his growing antagonism toward the alliance.

Musk’s latest accusations tap into broader antitrust concerns surrounding Apple’s App Store, which controls app distribution for over a billion iOS users. Critics argue that Apple’s 30% commission on in-app purchases and strict curation create a monopolistic environment. In April 2025, a California federal judge ruled that Apple violated a 2021 court order stemming from Epic Games’ landmark antitrust lawsuit. The order, from Epic’s 2021 suit over Fortnite’s removal, required Apple to allow developers to direct users to alternative payment options outside the App Store. However, Judge Yvonne Gonzalez Rogers found Apple’s implementation—imposing a 27% fee on external transactions and displaying warning screens—undermined competition. She referred Apple for a criminal contempt investigation, stating the company willfully disregarded the injunction.

Internationally, Apple faced similar heat. In April 2025, the European Commission fined the company €500 million ($570 million) for breaching the Digital Markets Act (DMA) by restricting developers from steering users to cheaper alternatives outside the App Store. The fine, part of a €700 million total penalty that also targeted Meta, highlighted Apple’s anti-steering policies as anti-competitive. Apple appealed the decision, arguing it protects user privacy and security, but the ruling adds pressure amid global regulatory crackdowns on Big Tech.

xAI’s potential lawsuit could amplify these issues, particularly in the AI sector, where competition is fierce. Founded by Musk in 2023, xAI positions Grok as a “maximum truth-seeking AI,” contrasting with what Musk calls “politically correct” rivals like ChatGPT. Recent benchmarks show Grok excelling in coding tasks, outperforming models from OpenAI, Google, and others on the International Olympiad in Informatics. Musk touted these wins on X, questioning why Apple ignores Grok in AI categories despite its superior performance. Supporters echoed his call to action, urging users to rate Grok five stars to boost its visibility.

If pursued, the suit might join a wave of challenges, including the U.S. Department of Justice’s ongoing antitrust case against Apple and Google over app monopolies. Analysts suggest it could force Apple to revise its curation algorithms and promotional strategies, potentially leveling the playing field for emerging AI apps. However, proving bias without evidence may prove challenging, as App Store rankings blend downloads, ratings, and editorial input.

As AI becomes integral to consumer tech, Musk’s battle with Apple underscores the high stakes. With xAI raising $6 billion in funding and Grok gaining traction—recently surpassing Google in App Store popularity—Musk appears determined to challenge perceived gatekeepers. Apple, OpenAI, and xAI have been contacted for comment, but responses are pending. This dispute not only highlights personal rivalries but also raises critical questions about innovation, competition, and fairness in the digital economy.

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