Elon Musk's xAI, X Sue Apple And OpenAI, Seek Billions In Damages, Say ChatGPT Partnership Is A 'Tale Of Two Monopolists Joining Forces'

Elon Musk's artificial intelligence company xAI and social media platform X have filed a lawsuit against Apple Inc. AAPL and artificial intelligence giant OpenAI, alleging the companies favored ChatGPT over xAI's Grok and others.

Thwarting Competition And Innovation, xAI Says

The lawsuit, filed in a court in Texas by xAI on Monday, alleges that Apple and OpenAI have thwarted competition to protect their monopolies, in violation of "antitrust laws," court filings obtained by Reuters showed on Monday.

The lawsuit also says that Apple and OpenAI's partnership is "a tale of two monopolists joining forces to ensure their continued dominance," adding that the companies have "locked up markets" to prevent "innovators" like xAI from competing.

The filing shows that both companies are seeking billions of dollars in alleged damages due to the partnership, saying that "xAI and X have both been injured by this conduct."

Elon Musk Weighs In On App Store Rankings

Musk took to the social media platform X to express his discontent with the alleged favoritism towards OpenAI's ChatGPT.

"A million reviews with 4.9 average for Grok and still Apple refuses to mention Grok on any lists," Musk said, quoting a post that showcased Grok's statistics on the App Store.

Elon Musk's Massive AI Push, Unsolicited $97 Billion Takeover Bid

The lawsuit comes as Musk's companies have taken significant steps in the artificial intelligence race, with xAI investing over $40 billion in the company's Memphis data center that houses the Colossus 1 Supercomputer.

Over 208 Tesla Inc. TSLA Megapacks also power the data center, which has been under scrutiny by rights groups and advocates due to environmental concerns.

Musk had also reportedly enlisted help from Meta Platforms Inc. META CEO Mark Zuckerberg for an unsolicited $97 billion OpenAI takeover bid, OpenAI suggests and has asked a court to compel Meta to release documents tied to the matter.

Grok And DeepSeek Offered On Tesla Vehicles

Meanwhile, Tesla vehicles in the U.S. offer Grok integration in all models with an Advanced Micro Devices Inc. AMD chipset, marking another collaboration between Musk's companies.

However, to stay competitive in China, a crucial market for Tesla, the EV giant offers the AI model DeepSeek and TikTok parent ByteDance's Douban AI model on its vehicles in the country.

Apple's OpenAI Integration, Tesla Scraps Dojo

Apple had previously announced a partnership with OpenAI to offer ChatGPT integration on devices like the iPhone, the Mac line of computers and the iPad.

Elsewhere, Tesla has pulled the plug on developing an in-house AI chipset as the company scrapped its Dojo program, signing a $16.5 billion deal with Samsung Electronics SSNLF to develop AI6 self-driving chips.