Elon Musk’s xAI has filed a federal lawsuit against Apple and OpenAI, alleging their exclusive integration of ChatGPT into iPhones constitutes an anti-competitive monopoly.

The lawsuit claims this partnership inhibits user access to alternative AI chatbots like xAI’s Grok, which violates antitrust laws. Filed in Texas, the complaint outlines that Apple uses App Store ranking manipulations to favor OpenAI’s products while denying competitors visibility. xAI argues that this exclusivity provides OpenAI with unfair advantages through extensive user data interactions. An OpenAI spokesperson dismissed the lawsuit as frivolous, attributing it to Musk’s pattern of harassment. The outcome may significantly impact the dynamics of AI partnerships among tech giants and affect consumer choice in the mobile market for AI chatbots.