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Elon Musk’s xAI Takes Apple & OpenAI to Court Over Alleged AI Bias

Deepika Rana / Updated: Aug 26, 2025, 09:13 IST
Elon Musk’s xAI Takes Apple & OpenAI to Court Over Alleged AI Bias

Elon Musk’s artificial intelligence company, xAI, has filed a lawsuit against Apple and OpenAI, accusing them of anti-competitive practices in the growing AI market. The lawsuit, filed in a U.S. federal court, argues that Apple’s App Store ranking system unfairly favors OpenAI’s products, creating barriers for xAI’s chatbot, Grok, and other AI services to compete on equal footing.


Accusations of App Store Manipulation

According to the legal filing, Musk’s xAI claims that Apple has deliberately given preferential visibility to OpenAI’s ChatGPT and other affiliated AI apps, pushing them higher in App Store search results. The complaint also suggests that Apple may have struck undisclosed deals with OpenAI to strengthen their market dominance while sidelining competing AI models.


Musk’s Longstanding Feud With OpenAI

Elon Musk, a co-founder of OpenAI, has often criticized the company for drifting away from its original mission of open-source development and moving toward corporate control under Microsoft and Apple partnerships. The lawsuit underscores Musk’s belief that OpenAI is leveraging its ties with tech giants to restrict fair competition in the AI space.


Apple and OpenAI Under Scrutiny

While Apple has positioned itself as a neutral platform provider, critics have long accused the company of exercising tight control over app distribution and rankings. If Musk’s lawsuit gains traction, it could spark antitrust investigations into Apple’s App Store practices and OpenAI’s collaborations with big tech.


Industry Impact and What’s Next

Legal experts suggest this case could mark a turning point in the AI industry, as regulators worldwide are already examining how major corporations shape the future of artificial intelligence. If successful, Musk’s legal challenge could force greater transparency in app ranking algorithms and reduce the dominance of a few tech players in the AI sector.