TLDR: Apple has formally denied allegations from Elon Musk’s xAI and X Corp that its collaboration with OpenAI to integrate ChatGPT into its operating systems is anti-competitive. The tech giant is seeking to dismiss an antitrust lawsuit filed by Musk’s companies, asserting its right to choose partners and its future plans to work with multiple AI providers.
Cupertino, California – October 1, 2025 – Apple Inc. has vehemently denied accusations from Elon Musk’s artificial intelligence venture, xAI, and his social media platform, X Corp., that its strategic partnership with OpenAI is designed to undermine competitors. The denial comes as Apple filed a motion on Tuesday, October 1, 2025, to dismiss an antitrust lawsuit initiated by Musk’s entities in August 2025, which seeks billions of dollars in damages.
The lawsuit, filed in a U.S. District Court in Fort Worth, Texas (X Corp. v. Apple Inc., 25-cv-00914), alleges that Apple’s deep integration of OpenAI’s ChatGPT into its iPhone operating system creates an unfair advantage, effectively locking out rival generative AI chatbots like xAI’s Grok. Musk’s companies claim that this favoritism inhibits innovation within the AI industry and restricts consumer choice.
In its court filing, Apple’s lawyers argued that the antitrust injury alleged by xAI and X Corp. is based on “speculation on top of speculation.” They asserted that it is “widely known that Apple intends to partner with other generative AI chatbots” in the future, indicating that the current collaboration with OpenAI is not exclusive in the long term. Apple also contended that antitrust laws do not mandate that it partner with “every other generative AI chatbot—regardless of quality, privacy or safety considerations, technical feasibility, stage of development, or commercial terms.”
Furthermore, the lawsuit from xAI and X Corp. claims that Apple, which allegedly holds 65% of the U.S. smartphone market, has joined forces with OpenAI, which reportedly controls at least 80% of the generative AI chatbot market. They accuse Apple of manipulating App Store rankings to favor ChatGPT and delaying approvals for updates to the Grok app.
An OpenAI spokesperson has also weighed in on the matter, dismissing the lawsuit as consistent with Elon Musk’s “ongoing pattern of harassment.” This refers to a broader conflict between Musk and OpenAI, which he co-founded in 2015 before leaving and later launching xAI in 2023 to directly compete. Musk has previously sued OpenAI and its CEO, Sam Altman, over the company’s shift to a for-profit model.
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Apple maintains that its App Store operates fairly and without bias, and that its decision to integrate OpenAI’s technology is a legitimate business choice, not an anti-competitive maneuver. The outcome of this high-stakes legal battle could significantly influence how tech companies form partnerships and manage competition in the rapidly evolving artificial intelligence landscape.
