Elon Musk’s war with Apple and OpenAI took a legal turn on Monday, as he filed a lawsuit accusing the companies of colluding to entrench monopolies in the rapidly growing AI chatbot industry. Musk, who has frequently complained about the way Apple’s App Store rankings have disadvantaged his own chatbot, Grok, has now brought claims of anticompetitive conduct before a court.

Filed on behalf of Musk’s companies X and xAI, the lawsuit goes far beyond App Store rankings. It alleges that Apple and OpenAI have entered an illegal and exclusive agreement that not only grants ChatGPT preferential access to iPhone features but also locks out competitors from reaching Apple’s massive installed base. Musk says the deal violates antitrust and unfair competition laws and threatens his long-promised plan to build an “everything app” on top of Twitter, which he purchased in 2022.

Apple, according to the complaint, integrated ChatGPT as the default chatbot across iOS features such as Siri and Apple’s Writing Tools, while simultaneously granting OpenAI exclusive access to billions of user prompts. Chatbot developer X argues that data is essential for training and improving its models, and without it, rivals like Grok are unable to scale. The filing estimates OpenAI already has at least 80 percent of the chatbot market, but with Apple’s help, its monopoly could be made permanent.

“Generative AI chatbots would vigorously compete with one another in a fair market,” the lawsuit states. “Instead, defendants’ anticompetitive conduct has handed a substantial portion of the market to ChatGPT.”

Apple is said to be motivated by fears that a successful rival super app could one day make iPhones less essential, much as WeChat in China has become an all-in-one replacement for many standalone smartphone functions. The complaint cites Apple executive Eddy Cue as reportedly saying in 2023 that advances in AI could “destroy Apple’s smartphone business.” Musk’s filing characterizes the deal as a last-gasp effort by Apple to protect its iPhone monopoly, and by OpenAI to build an insurmountable lead in generative AI.

Exclusive Access Fuels Growing Market Power

The complaint draws comparisons to Apple’s similar deal with Google to make its search engine the default on iPhone, which has been challenged by U.S. regulators for entrenching Google’s search monopoly. Musk alleges Apple has rejected repeated attempts by xAI to integrate Grok into iOS, and even refused to feature Grok in the App Store, including when the company launched a new “Imagine” feature. Beyond that, the filing alleges Apple actively manipulated App Store rankings and delayed Grok updates in order to stifle competition.

Musk argues that far more than Grok’s ability to compete is at stake in the lawsuit, as Apple and OpenAI seek to shape the future of AI-driven platforms. The filing notes that Siri alone handled 1.5 billion user requests globally per day in 2024, a volume that outpaces the total prompts collected for all generative AI chatbots that year. If OpenAI alone receives those prompts, it effectively controls up to 55 percent of all potential chatbot interactions, according to X.

The consequences for consumers could be significant. Apple customers, the filing warns, may end up with fewer choices and less capable chatbots, while paying monopoly prices for iPhones. OpenAI could use its dominant position to raise subscription prices, with plans to double its “plus” subscription over the next four years. “That plan would be unfeasible unless OpenAI has power over marketwide prices,” the lawsuit alleges.

Musk also warns Apple’s actions could have a chilling effect on investment in the field. If Apple continues to “press its thumb firmly on the scale” in favor of ChatGPT, other investors may see little value in backing rivals, and they will be deprived of the resources needed to grow and compete. The effect, X argues, could be the loss of talent as Big Tech firms scoop up developers from underfunded startups.

The lawsuit also points to the financial logic of the Apple-OpenAI deal, according to X. OpenAI reportedly provided ChatGPT to Apple for free, effectively paying for the privilege of partnering with Apple, while Apple is not expected to make a profit on the deal for years. The filing suggests that both companies view the exclusivity as worth more than direct revenue, as it broadly blocks rivals and entrenches control over the market.

“By making the deal exclusive, Apple sacrificed the profits it would have earned by integrating multiple chatbots,” the complaint argues. “The true motive was Apple and OpenAI’s shared goal of blocking competition.”

Musk is staking his ability to fairly compete on the lawsuit. He warns that if it’s not resolved, Grok may never be able to scale against ChatGPT, leaving X less valuable to users and investors. “Because Grok’s functionality is a key feature of the X app, the X app is more attractive the better Grok performs,” the filing states. “Defendants’ conduct makes Grok less able to compete with ChatGPT, leading to fewer customers, less revenue, and ultimately a depressed enterprise value for X.”

Musk’s companies are seeking billions in damages, as well as a permanent injunction that would block Apple from exclusively integrating ChatGPT into iOS. OpenAI, in a response to Ars Technica, dismissed the filing as part of Musk’s “ongoing pattern of harassment.” Apple declined to comment.

Whether a court agrees with Musk that Apple and OpenAI have illegally entrenched monopolies could determine not only the fate of Grok but also how competitive the next chapter of AI innovation will be.