The tech world is bracing for a major legal showdown. Elon Musk, through his companies X Corp. and xAI, has filed a federal antitrust lawsuit against Apple and OpenAI in Texas. He claims their deal to make ChatGPT the exclusive AI assistant on iPhones is an unlawful monopoly that blocks fair competition in the AI market.
⚖️ Lawsuit Seeks Billions, Alleges Monopoly
The lawsuit demands “billions of dollars” in damages and a court order to terminate Apple’s deal with OpenAI. Musk’s companies argue that this alliance creates a duopoly of tech giants, securing exclusive control over a vital resource: billions of user queries flowing through hundreds of millions of iPhones.
According to filings, ChatGPT controls over 80% of the generative AI chatbot market, while Musk’s Grok holds only “a few percent,” despite allegedly matching or exceeding its rival’s capabilities.
📱 ChatGPT’s Exclusive Access to iPhones
In June 2024, Apple announced that ChatGPT would become the exclusive AI chatbot integrated into iOS. This allows iPhone users to get Siri responses powered by ChatGPT, analyze photos, and access writing tools — all solely through OpenAI.
Musk argues this represents a closed ecosystem, locking out competitors like Grok from the data and feedback loop needed to improve their services. “The exclusive agreement has blocked others and entrenched OpenAI’s dominance,” the lawsuit states.
🛑 App Store Manipulation Alleged
Musk also accuses Apple of manipulating App Store rankings. He claims Grok and the X platform — despite ranking among the top apps in “Productivity” and “News” — are missing from the prominent “Must Have” lists, while ChatGPT is systematically favored.
The complaint further alleges Apple has delayed approvals for Grok updates and rejected requests for new features, while giving ChatGPT preferential treatment.
💰 Apple’s “Monopoly Rent” With OpenAI
The lawsuit asserts that Apple plans to share revenues from ChatGPT subscriptions, which are projected to rise to $44 per month by 2029. This would grant Apple what Musk calls a “monopoly rent”, ensuring it profits from OpenAI’s dominance.
Apple reportedly fears the rise of “super apps” that could make iPhones less essential and threaten its current 65% share of the U.S. smartphone market.
🔑 What Musk Wants
X Corp. and xAI are seeking:
Termination of the Apple–OpenAI exclusivity dealEqual integration opportunities for competitorsBillions of dollars in damages
👉 This lawsuit could redefine the future of AI on mobile devices. If Musk succeeds, it may open the door to greater competition among chatbots and force Apple to rethink its approach to AI integration.
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