Close Menu

    Stay Ahead with Exclusive Updates!

    Enter your email below and be the first to know what’s happening in the ever-evolving world of technology!

    What's Hot

    Gemini 3.5 Pro Missed Its June Deadline and Is Now Pointing to July. For Google’s Most Anticipated Model of the Year, Every Week of Delay Has a Cost.

    July 15, 2026

    Meta Is Planning to Sell Its Excess AI Compute to Outside Customers. The Company That Was Rationed Gemini Access by Google Just Positioned Itself to Become a Cloud Provider.

    July 15, 2026

    Tesla Just Launched Its Robotaxi in Miami with No Safety Monitor Inside the Car

    July 14, 2026
    Facebook X (Twitter) Instagram
    Facebook X (Twitter)
    PhronewsPhronews
    • Home
    • Big Tech & Startups

      Gemini 3.5 Pro Missed Its June Deadline and Is Now Pointing to July. For Google’s Most Anticipated Model of the Year, Every Week of Delay Has a Cost.

      July 15, 2026

      Meta Is Planning to Sell Its Excess AI Compute to Outside Customers. The Company That Was Rationed Gemini Access by Google Just Positioned Itself to Become a Cloud Provider.

      July 15, 2026

      Tesla Just Launched Its Robotaxi in Miami with No Safety Monitor Inside the Car

      July 14, 2026

      A UN Panel Named the Specific Ways Unchecked AI Could Go Catastrophically Wrong. The List Is More Concrete Than Most People Expect

      July 14, 2026

      The United Nations Just Launched a Global AI Commission. The Real Question Is Whether It Has Any Power to Actually Change How AI Gets Built

      July 14, 2026
    • Crypto

      Market Collapse: What Happened to NFTs?

      April 23, 2026

      Quantum Computing Advances Force Coinbase and Institutional Custodians to Rethink Crypto Security

      March 8, 2026

      AI Assisted Hacking Groups Target Crypto Firms With Multi-Layered Social Engineering

      February 18, 2026

      Global Crypto Regulations Expand as 2026 Begins With New Data Collection Frameworks and National Laws

      January 16, 2026

      Coinbase Bets on Stablecoin and On-Chain Growth as Key Market Drivers in 2026 Strategy

      January 10, 2026
    • Gadgets & Smart Tech
      Featured

      Tesla Just Launched Its Robotaxi in Miami with No Safety Monitor Inside the Car

      By preciousJuly 14, 2026
      Recent

      Tesla Just Launched Its Robotaxi in Miami with No Safety Monitor Inside the Car

      July 14, 2026

      Google’s New Smart Speaker Has Gemini Built In and Works With Everything. Here Is Whether It Is Finally Worth Switching From Amazon Echo or Apple HomePod

      July 4, 2026

      Tesla Is Teaching Its Self-Driving AI With Millions of Fake Crashes. Here Is Why That Might Make Real Roads Safer

      June 30, 2026
    • Cybersecurity & Online Safety

      Hackers Stole 630GB of Apple and Tesla Manufacturing Secrets from Tata Electronics. The Breach Confirms Everything Supply Chain Security Experts Have Warned About for Years.

      July 9, 2026

      Apple Just Pushed an Unscheduled Security Update Because AI-Powered Attacks Are Moving Faster Than Its Normal Patch Cycle Can Handle

      July 6, 2026

      Buying World Cup Tickets Online? Scammers Are Already Waiting. Here Is How to Protect Yourself for the Rest of the Tournament.

      July 4, 2026

      Researchers Found an Attack Spreading Through GitHub Like a Parasite. They Named It Cordyceps and It Is Already in 300+ Repositories

      July 4, 2026

      AI Is Now Writing Phishing Emails Good Enough to Fool Your Best Employees. Here Is How to Spot Them

      July 4, 2026
    PhronewsPhronews
    Home»Artificial Intelligence & The Future»xAI sues Apple and OpenAI, accusing them of an anti-competitive scheme
    Artificial Intelligence & The Future

    xAI sues Apple and OpenAI, accusing them of an anti-competitive scheme

    preciousBy preciousSeptember 1, 2025Updated:September 4, 2025No Comments
    Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email
    xAI, Apple, OpenAI logos and a court gavel appear in this illustration. REUTERS/Dado Ruvic/Illustration

    Elon Musk’s artificial intelligence startup xAI has filed an antitrust lawsuit against Apple and OpenAI, accusing both tech giants of conspiring to dominate the smartphone and AI chatbot markets through anti-competitive practices. 

    Lodged in a U.S. federal court in Texas, the lawsuit seeks billions of dollars in damages and aims to disrupt the exclusive partnership between Apple and OpenAI that xAI says “unfairly locks out competitors” like itself. 

    The exclusive partnership between Apple and OpenAI is the major point of this lawsuit, as both companies recently came to an agreement to integrate ChatGPT into Apple’s line of products (iOS, iPadOS and macOS). 

    “In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots,” the lawsuit said. 

    “OpenAI’s exclusive arrangement has made ChatGPT the only generative AI chatbot integrated into the iPhone. This means that if iPhone users want to use a generative AI chatbot for key tasks on their devices, they have no choice but to use ChatGPT, even if they would prefer to use more innovative and imaginative products like xAI’s Grok,” the lawsuit continued. 

    The lawsuit further alleges that Apple and OpenAI have used their dominant market positions to maintain monopolies in their respective field, as Apple holds about 65% of the U.S. smartphone market and OpenAI commands around 80% of the generative AI chatbot market. Together, both tech giants allegedly prevent innovators like xAI and its AI chatbot Grok from competing on an equal footing.

    The lawsuit also points to Apple’s App Store practices as part of the anti-competitive scheme. xAI claims that Apple manipulates the rankings on its App Store to prioritize OpenAI’s ChatGPT app while sidelining competing AI apps like xAI’s Grok. 

    Despite Grok’s high user ratings and growing popularity, it has not been featured in Apple’s “Must Have” app categories, unlike ChatGPT, which allegedly enjoys preferential treatment, xAI claims. Musk, in a post on his social media platform X, wrote that, “A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists.”

    xAI is seeking both substantial financial damages and an injunction to stop the alleged anti-competitive practices so that the AI startup and other competitors may have the fair chance to compete fully in the GenAI market. 

    In response to this lawsuit, an OpenAI spokesperson said in a statement, “This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.” This legal action comes amid a long-standing feud between Musk and OpenAI’s CEO Sam Altman. Musk was initially a co-founder of OpenAI in 2015 but left in 2018 due to differences in the startup’s direction.

    AI Chatbot Market AI competition antitrust lawsuit App Store Practices Apple apple openai deal artificial intelligence market big tech regulation ChatGPT competition law corporate lawsuits digital markets Elon Musk fair market access future of ai generative AI Grok AI innovation barriers ios integration iphone monopoly monopolistic practices musk vs openai OpenAI Sam Altman smartphone market tech antitrust battle tech monopoly technology rivalry us federal court us technology law xAI
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    precious
    • LinkedIn

    I’m Precious Amusat, Phronews’ Content Writer. I conduct in-depth research and write on the latest developments in the tech industry, including trends in big tech, startups, cybersecurity, artificial intelligence and their global impacts. When I’m off the clock, you’ll find me cheering on women’s footy, curled up with a romance novel, or binge-watching crime thrillers.

    Related Posts

    Gemini 3.5 Pro Missed Its June Deadline and Is Now Pointing to July. For Google’s Most Anticipated Model of the Year, Every Week of Delay Has a Cost.

    July 15, 2026

    Meta Is Planning to Sell Its Excess AI Compute to Outside Customers. The Company That Was Rationed Gemini Access by Google Just Positioned Itself to Become a Cloud Provider.

    July 15, 2026

    Tesla Just Launched Its Robotaxi in Miami with No Safety Monitor Inside the Car

    July 14, 2026

    Comments are closed.

    Top Posts

    Coinbase responds to hack: customer impact and official statement

    May 22, 2025

    Anthropic Will Use Claude User Chats For Data Training

    October 16, 2025

    Cursor AI Hits 1 Million Daily Users. Why Developers Are Switching to This Coding Tool

    March 23, 2026

    MIT Study Reveals ChatGPT Impairs Brain Activity & Thinking

    June 29, 2025
    Don't Miss
    Artificial Intelligence & The Future

    Gemini 3.5 Pro Missed Its June Deadline and Is Now Pointing to July. For Google’s Most Anticipated Model of the Year, Every Week of Delay Has a Cost.

    By preciousJuly 15, 2026

    Google’s most anticipated AI model for 2026 has missed the launch window that the company…

    Meta Is Planning to Sell Its Excess AI Compute to Outside Customers. The Company That Was Rationed Gemini Access by Google Just Positioned Itself to Become a Cloud Provider.

    July 15, 2026

    Tesla Just Launched Its Robotaxi in Miami with No Safety Monitor Inside the Car

    July 14, 2026

    A UN Panel Named the Specific Ways Unchecked AI Could Go Catastrophically Wrong. The List Is More Concrete Than Most People Expect

    July 14, 2026
    Stay In Touch
    • Facebook
    • Twitter
    About Us
    About Us

    Evolving from Phronesis News, Phronews brings deep insight and smart analysis to the world of technology. Stay informed, stay ahead, and navigate tech with wisdom.
    We're accepting new partnerships right now.

    Email Us: info@phronews.com

    Facebook X (Twitter) Pinterest YouTube
    Our Picks
    Most Popular

    Coinbase responds to hack: customer impact and official statement

    May 22, 2025

    Anthropic Will Use Claude User Chats For Data Training

    October 16, 2025

    Cursor AI Hits 1 Million Daily Users. Why Developers Are Switching to This Coding Tool

    March 23, 2026
    © 2025. Phronews.
    • Home
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.