Why Elon Musk Is Suing Apple and OpenAI Over AI Competition

4 hours ago 1

September 18, 2025 | 08:36 pm

TEMPO.CO, Jakarta - Elon Musk, the founder of Tesla and majority shareholder of X, has filed a lawsuit against Apple and OpenAI, claiming that the tech giants are restricting competition in the artificial intelligence (AI) market.

The legal action, brought by Musk’s companies X Corp and xAI on August 25, 2025, in the Northern District of Texas, highlights growing concerns over how AI platforms are distributed and promoted on smartphones.

What’s the Lawsuit About?

At the heart of the dispute is Apple’s agreement with OpenAI to make ChatGPT the default AI chatbot on iPhones. Musk’s companies argue that this arrangement limits fair competition by making it difficult for other generative AI chatbots and super apps to gain visibility and grow.

The lawsuit claims that Apple has allegedly prioritized OpenAI’s tools in App Store rankings and slowed the review process for rival apps, reinforcing its smartphone monopoly.

The filing also states that iPhone users are effectively locked into using ChatGPT, which is embedded in the iOS 18 system update. According to Musk’s companies, this has caused significant financial losses for X and xAI, potentially amounting to billions of dollars in lost sales and a drop in company value.

Impact on Competitors

The lawsuit points out that even highly rated competitor apps, like xAI’s chatbot Grok, do not appear in the App Store’s “Must-Have Apps” section, which could limit their exposure to users.

Musk previously confirmed the lawsuit on X (formerly Twitter), claiming that Apple’s actions make it nearly impossible for AI companies outside OpenAI to reach the top of the App Store.

Currently, ChatGPT ranks as the top free app on the U.S. App Store, while Grok is in sixth place. Earlier this year, a Chinese AI chatbot, DeepSeek, briefly topped the charts, highlighting the competitive nature of the AI app market.

Musk, OpenAI, and Apple Speak Out

OpenAI CEO Sam Altman has dismissed Musk’s allegations, accusing him of using X for personal and corporate gain and warning that the lawsuit could harm other competitors. Altman emphasized that OpenAI remains focused on product development and hopes the facts behind the accusations will be clarified.

Apple, meanwhile, defended its App Store policies, stressing that the platform is designed to be fair and unbiased. The company explained that apps are displayed through graphics, algorithmic recommendations, and expert-curated lists based on objective criteria.

Why It Matters for AI Users

The lawsuit raises broader questions about how major tech companies manage access to AI tools and the balance between promoting innovation and maintaining competitive marketplaces.

The outcome could affect which apps get visibility, how users experience AI on their devices, and the pace of innovation in the rapidly growing AI sector.

Faiz Zaki contributed to the writing of this article.

Editor’s Choice: Apple's iOS 26 Updates: Compatible iPhone Models and Exciting New Features

Click here to get the latest news updates from Tempo on Google News



Apple's iOS 26 Updates: Compatible iPhone Models and Exciting New Features

10 jam lalu

Apple's iOS 26 Updates: Compatible iPhone Models and Exciting New Features

Apple has released the latest iOS 26 update earlier this week. Three iPhone models are no longer supported by this operating system.


Pope Leo Criticizes Elon Musk Trillion-Dollar Proposed Pay: "We're in Big Trouble"

2 hari lalu

Pope Leo Criticizes Elon Musk Trillion-Dollar Proposed Pay: "We're in Big Trouble"

Pope Leo XIV criticizes the gap between the rich and the poor, highlighting Elon Musk's potential earnings of US$1 trillion.


Indonesia to Process iPhone 17 Import Permits Immediately if Criteria Fulfilled

6 hari lalu

Indonesia to Process iPhone 17 Import Permits Immediately if Criteria Fulfilled

Ministry of Trade reveals that the requirements for import approval apply not only to Apple, but also to all imported commodities.


When Will Apple's iPhone 17 Be Available in Indonesia?

6 hari lalu

When Will Apple's iPhone 17 Be Available in Indonesia?

Apple's iPhone 17 series is rumored to have a number of improvements over the iPhone 16 series.


Apple to Discontinue 7 Products After iPhone 17 Launch

16 hari lalu

Apple to Discontinue 7 Products After iPhone 17 Launch

The launch of the iPhone 17 will lead to the discontinuation of several Apple products across the iPhone, Apple Watch, and AirPods lineups.


Elon Musk Sues Apple and OpenAI Over 'Monopolistic' Behavior

23 hari lalu

Elon Musk Sues Apple and OpenAI Over 'Monopolistic' Behavior

Elon Musk's xAI company alleges that a collaboration between the two is preventing his Grok chatbot from competing with ChatGPT.


10 Richest People in the World 2025, Elon Musk Lost Billions

24 hari lalu

10 Richest People in the World 2025, Elon Musk Lost Billions

Explore the 2025 list of the richest people in the world, where staggering fortunes reflect the dominance of technology-driven empires.


Apple Shifts iPhone 17 Production to India from China

25 hari lalu

Apple Shifts iPhone 17 Production to India from China

This move is part of Apple's broader strategy to diversify its supply chain and reduce its dependence on manufacturing in China.


A Look at Steve Jobs' Net Worth and His Inheritance

25 hari lalu

A Look at Steve Jobs' Net Worth and His Inheritance

At US$10.2 billion, Steve Jobs' net worth wasn't just built on Apple; see the breakdown of the late billionaire's wealth here.


Apple Releases iOS 18.6.2 Update to Strengthen Security Against Attacks

27 hari lalu

Apple Releases iOS 18.6.2 Update to Strengthen Security Against Attacks

Apple states it does not disclose security issues until an investigation is conducted.


Read Entire Article
Parenting |