Elon Musk has escalated his ongoing dispute with OpenAI, filing a federal lawsuit in Texas alongside his companies X and xAI against Apple and OpenAI.

The legal action alleges that the tech giants have created an anti-competitive partnership by embedding OpenAI’s ChatGPT directly into iPhones, sidelining rival AI chatbots such as xAI’s Grok.

The lawsuit focuses on Apple’s June 2024 announcement of an exclusive deal integrating ChatGPT into iPhones. The arrangement allows users to access ChatGPT seamlessly through Siri and other system features, without needing to download a separate app. Musk’s legal team contends that this gives OpenAI an unfair advantage, as competing chatbots must rely on app downloads or web access, restricting their reach in the lucrative smartphone AI market.

“There is no valid business reason for the Apple-OpenAI deal to be exclusive,” the filing states. It further alleges that the partnership not only blocks rivals but also provides OpenAI with access to valuable user interaction data.

The lawsuit also targets Apple’s App Store, claiming it boosts ChatGPT’s visibility while suppressing competitors. With Apple controlling roughly 65% of the U.S. smartphone market, access to its platform is critical for AI companies seeking widespread adoption. The case adds to ongoing scrutiny of Apple’s App Store practices, which are already under investigation in other antitrust cases, including one related to Google’s search dominance.

However, the situation is complex. Other AI chatbots, such as China’s DeepSeek and Perplexity, have reportedly gained traction on Apple’s App Store since 2024, suggesting that competitors can still reach audiences. Apple has also explored integrating Google’s Gemini chatbot to enhance Siri, potentially challenging Musk’s claims of monopoly.

The lawsuit also highlights the deteriorating relationship between Musk and OpenAI CEO Sam Altman. The two co-founded OpenAI in 2015 with the goal of advancing AI for humanity, but Musk later accused Altman of prioritizing commercial interests. OpenAI has dismissed the lawsuit as part of Musk’s “ongoing pattern of harassment,” while Apple declined to comment.

Musk’s companies argue that the Apple-OpenAI deal stifles innovation and competition in the generative AI market, where OpenAI reportedly holds an 80% share. The case will now test whether courts consider such exclusive partnerships legitimate business practices or barriers to fair competition. (ILKHA)