Musk Sues Apple and OpenAI Over ChatGPT Deal

Elon Musk took a step in his ongoing feud with Apple and OpenAI on Monday, filing a lawsuit alleging that the two companies colluded to entrench monopolies in the increasingly lucrative AI chatbot market. Musk’s latest move comes only a few weeks after he previously complained in a series of public statements that Apple has consistently promoted OpenAI’s ChatGPT while his own chatbot, Grok, has been missing from the App Store’s “Must Have” list.

Filed on behalf of Musk’s companies X and xAI, the lawsuit goes well beyond complaints about App Store rankings. It accuses Apple and OpenAI of entering into an exclusive deal that not only gives ChatGPT unprecedented access to iPhone features but also bars competitors from reaching Apple’s user base. Musk is arguing that the arrangement violates antitrust and unfair competition laws, and if it is allowed to stand, threatens to derail his long-promised vision of an “everything app” built on the foundation of Twitter, which he acquired in 2022.

Musk’s filing alleges Apple integrated ChatGPT into iOS as the default chatbot across Siri, Apple’s Writing Tools, and other features, giving OpenAI exclusive access to billions of user prompts. X argues that data is critical for training and improving chatbot models, and without access to it, rivals like Grok cannot scale. The filing estimates that OpenAI already controls at least 80 percent of the chatbot market, and Apple’s integrations would further entrench its lead, cementing ChatGPT’s dominance indefinitely.

“Generative AI chatbots would vigorously compete with one another in a fair market,” the lawsuit states. “Instead, defendants’ anticompetitive conduct has handed a substantial portion of the market to ChatGPT.”

Musk’s filing also argues that Apple is motivated by fears that a successful rival super app would one day make iPhones less essential for users, much like WeChat in China has become a popular all-in-one replacement for many standalone smartphone features and apps. The complaint even cites Apple executive Eddy Cue allegedly expressing fears that AI advances could “destroy Apple’s smartphone business.” Musk’s filing casts the deal as a desperate move by Apple to preserve its iPhone monopoly while also helping OpenAI build an unbeatable lead in generative AI.

Exclusive Access and Growing Market Power

The complaint draws parallels to Apple’s longstanding search engine arrangement with Google that US regulators have argued locks in Google’s monopoly. Musk alleges Apple repeatedly rebuffed attempts by xAI to integrate Grok with iOS, and even refused to feature Grok in the App Store, including for its new “Imagine” feature launch. Beyond that, the filing claims Apple manipulated App Store rankings and delayed Grok updates to stifle competition.

At stake, Musk argues, is not just Grok’s ability to compete, but the very future of AI-driven platforms. The lawsuit notes that Siri handled 1.5 billion user requests per day across the globe in 2024, a volume greater than the total prompts for all generative AI chatbots combined in that year. If OpenAI is the only company receiving those prompts, it effectively controls up to 55 percent of all potential chatbot interactions, X is arguing.

The filing also suggests the consequences for consumers could be significant. Apple customers may end up with fewer options and less capable chatbots, while paying monopoly prices for iPhones, the suit argues. Meanwhile, OpenAI could use its dominant position to raise subscription prices with plans to double its “plus” subscription over the next four years, Musk’s filing notes. “That plan would be unfeasible unless OpenAI has power over marketwide prices,” the lawsuit alleges.

Musk also highlights the chilling effect on investment. If Apple continues to “press its thumb firmly on the scale” for ChatGPT, investors may see little value in backing rivals, depriving them of the resources needed to grow and compete, the filing claims. This could also lead to talent loss as Big Tech firms scoop up developers from underfunded startups, X argued.

The lawsuit also questions the financial logic of the Apple-OpenAI deal. According to X, OpenAI provided ChatGPT to Apple for free, effectively paying for the partnership itself, while Apple expects to see no near-term profit for the integration. The filing suggests both companies view the exclusivity as more valuable than direct revenue, as it broadly blocks rivals and entrenches market control.

“By making the deal exclusive, Apple sacrificed the profits it would have earned by integrating multiple chatbots,” the complaint argues. “The true motive was Apple and OpenAI’s shared goal of blocking competition.”

For Musk, the stakes could not be higher. He warns that without relief, Grok may never be able to fairly compete, making X less attractive to users and investors. “Because Grok’s functionality is a key feature of the X app, the X app is more attractive the better Grok performs,” the filing states. “Defendants’ conduct makes Grok less able to compete with ChatGPT, leading to fewer customers, less revenue, and ultimately a depressed enterprise value for X.”

Musk’s companies are seeking billions in damages in addition to a permanent injunction blocking Apple’s exclusive integration of ChatGPT. OpenAI, responding to Ars Technica, dismissed the filing as part of Musk’s “ongoing pattern of harassment.” Apple declined to comment.

Whether a court ultimately agrees with Musk that Apple and OpenAI have illegally entrenched monopolies could determine not only the fate of Grok but also how competitive the next chapter of AI innovation will be.