OPINION: The Irony Of Musk’s xAI Lawsuit Against Apple, OpenAI
Elon Musk’s xAI, alongside its social media arm X, has launched a legal offensive against tech giants Apple and OpenAI, accusing them of an “anticompetitive scheme” to dominate the smartphone and generative AI markets.
The lawsuit, filed on August 25, 2025, alleges that Apple’s integration of OpenAI’s ChatGPT into its ecosystem unfairly favours the AI startup, potentially sidelining competitors like xAI’s Grok. The irony is that this anti-competitive behaviour hit closer to home for Musk’s own “empire”.
The Lawsuit
At the core of xAI’s legal action is the assertion that Apple’s partnership with OpenAI, announced on June 10, 2024, gives ChatGPT an unfair edge by embedding it into iPhones, iPads, and Macs. The suit argues that Apple deprioritises competing AI apps, such as Grok, in its App Store rankings, adding that this is designed to protect its smartphone monopoly while promoting OpenAI’s dominance in generative AI.
This narrative builds on Musk’s rocky history with OpenAI, which he co-founded in 2015 before leaving in 2018 over strategic differences, followed by a 2024 breach-of-contract lawsuit against the company.
As opposed to Musk’s claim, within the period of the OpenAI-Apple collaboration, there was a rise of AI apps like DeepSeek and Perplexity, which hit #1 on the App Store in January and July 2025, respectively. However, xAI contends that these successes are overshadowed by Apple’s alleged bias.
The Unseen Parallel
As xAI points fingers at Apple, scrutiny is turning toward X itself. The platform, under Musk’s leadership, has implemented policies that mirror the anti-competitive behaviours it condemns. A notable example is the algorithm’s tendency to reduce visibility for posts containing external links, which studies show can shrink small account growth by up to 70 per cent. This restriction is designed to keep users engaged on X. Penalising content creators and businesses, particularly those with limited followings, has been the order of the day.
Historical data from MIT Technology Review adds fuel to the fire, recalling a December 2022 X policy that briefly banned links to rival platforms like Facebook and Instagram, risking account suspensions. Though reversed within 24 hours after user backlash, it suggests a pattern of testing restrictive measures to consolidate user engagement.
You probably would have noticed account suspension issues post-blue-tick payments and a lack of support response, and other operational inconsistencies since the Musk takeover of the platform.
Evidence And Counterpoints
The App Store data presents a challenge to xAI’s monopoly claims. Despite the OpenAI-Apple partnership, AI apps like DeepSeek and Perplexity have thrived, indicating Apple hasn’t fully blocked competition. This raises questions about the lawsuit’s foundation—could it be more about strategic rivalry than clear anti-competitive proof? Meanwhile, X’s own algorithmic penalties and past link bans suggest a double standard. Musk’s platform may be as guilty of stifling fair play. His move is hypocritical, given X’s policies.
A 2025 arXiv paper, “Revealing The Secret Power”, explains the impact of algorithmic manipulation, noting that such controls can create barriers for smaller players—ironic for a lawsuit championing competition.
The Broader Implications
This legal clash is beyond AI and app rankings; it’s a personal and business feud with deep roots. Musk’s $97.4 billion “sham bid” to buy OpenAI in 2024, as per OpenAI’s counterclaim, and his ongoing rivalry with former colleagues could be the root of this.
The Heritage Foundation’s recent push to hold Big Tech accountable for algorithmic manipulation and data privacy further amplifies the stakes, placing xAI’s actions under intense scrutiny. Is this lawsuit a genuine fight against monopolies, or a strategic move to deflect from X’s own practices?
OPINION: The Irony Of Musk’s xAI Lawsuit Against Apple, OpenAI is first published on The Whistler Newspaper
