Elon Musk's companies, X Corp and xAI, filed a 61-page antitrust lawsuit on August 25, 2025, in the U.S. District Court for the Northern District of Texas against Apple Inc. and OpenAI entities. The complaint states that Apple, which holds approximately 65% of the U.S. smartphone market, and OpenAI, which controls over 80% of the generative AI chatbot market, have entered into an anticompetitive agreement to maintain their respective monopolies and suppress rivals, including xAI's Grok chatbot. At the core of the suit is Apple's and OpenAI's June 2024 partnership, which exclusively integrates OpenAI's ChatGPT into Apple's iOS, making it the default and sole generative AI chatbot for certain iPhone features, such as Siri responses, camera integrations, and writing tools. Plaintiffs express that this deal forecloses competitors from accessing billions of user prompts from hundreds of millions of iPhones, thereby amplifying network effects and scale advantages that enable ChatGPT to improve more rapidly while restricting rivals' growth and innovation. The lawsuit argues this entrenches both companies' market dominance, suppresses the development of AI-powered "super apps" that could disrupt Apple's smartphone ecosystem, and harms consumers through reduced choices, lower quality, and higher prices. The complaint also reports that Apple has manipulated App Store rankings to deprioritize competing apps, such as X and Grok, delayed Grok app updates, and rejected feature requests. These allegations mirror those in the U.S. Department of Justice's ongoing antitrust case against Apple, which alleges that Apple uses the App Store to bury competitors. It underlines OpenAI's shift from a nonprofit focused on benefiting humanity to a profit-driven entity, citing internal resignations, safety concerns, and FTC investigations into its practices as evidence of prioritizing dominance over ethical AI development. Key claims include violations of Sections 1 and 2 of the Sherman Act (unreasonable restraint of trade, monopolization, and conspiracy to monopolize), as well as Texas state antitrust and unfair competition laws. Plaintiffs seek billions in damages, including trebled antitrust damages and punitive awards, a permanent injunction to end the exclusive deal and open iOS integrations to rivals, and a jury trial. This lawsuit may have far-reaching implications for ongoing disputes on AI competition and antitrust enforcement across the technology industry. Link to a read-only Grok project that you can interact with to find out more and download the filed document in comments. 👇