OpenAI has forcefully rejected the allegations in a new lawsuit filed by Elon Musk’s xAI, labeling the move as part of an “ongoing pattern of harassment.” The suit, which also names Apple as a defendant, accuses the two companies of conspiring to monopolize the generative AI and smartphone markets through their strategic partnership.
The legal complaint, filed in Texas, argues that Apple’s decision to integrate OpenAI’s technology into its operating systems is an illegal tactic to crush competition. Musk’s filing contends that this deal solidifies OpenAI’s dominance and unfairly disadvantages rival AI chatbots, such as xAI’s own Grok. The suit seeks to nullify the agreement and demands billions in financial reparations.
This is the latest, and perhaps most significant, legal battle in the long-running saga between Musk and OpenAI co-founder Sam Altman. Once partners in launching the AI research lab, their relationship has devolved into a public spectacle of lawsuits and insults. Musk has repeatedly challenged OpenAI’s for-profit model, which he claims betrays its original mission.
In past statements, OpenAI has lamented the turn of events, portraying Musk as someone who “sued us when we started making meaningful progress… without him.” This new lawsuit deepens the rift between the two camps and sets up a high-stakes legal confrontation that could reshape the future of AI competition and platform partnerships in the tech industry.