The legal battle begins: Elon Musk’s xAI sues Apple and OpenAI for manipulating App Store rankings

By Admin

26 Aug, 2025

The world of artificial intelligence has taken a sharp turn from innovation to litigation as Elon Musk’s AI venture, xAI, officially filed a lawsuit against Apple and OpenAI. Musk has accused the two tech giants of forming an unfair partnership, manipulating App Store rankings, and creating an antitrust environment that disadvantages competitors.

Musk’s Allegations Against Apple and OpenAI

According to the lawsuit, Musk argues that Apple unfairly favors OpenAI’s ChatGPT by consistently showcasing it in top App Store rankings and promotional features. He pointed out that while ChatGPT remains visible as a leading app, other advanced AI applications such as X and Grok do not appear, despite their popularity and user base.

Musk further claims this selective visibility violates antitrust laws, making it difficult for rival AI companies to compete fairly. Earlier this month, he had already warned of possible legal action, calling Apple’s practices an “unequivocal antitrust violation.”

Filing the Lawsuit in Texas

On Monday, Musk’s xAI filed the lawsuit in Texas court, alleging that Apple and OpenAI’s exclusive arrangement gives ChatGPT an “unfair competitive edge.” The lawsuit stresses that ChatGPT is the only generative AI chatbot directly integrated into iPhones, benefitting from billions of user interactions something no other AI competitor enjoys.

The lawsuit states:

“Apple and OpenAI’s exclusive arrangement has made ChatGPT the only generative AI chatbot integrated into the iPhone. ChatGPT is the only generative AI chatbot that benefits from billions of user prompts originating from hundreds of millions of iPhones. This makes it hard for competitors of ChatGPT’s generative AI chatbot and super apps powered by generative AI chatbots to scale and innovate.”

Evidence Provided by xAI

To back its claims, xAI presented App Store ranking data that Musk says is manipulated in favor of OpenAI. Additionally, Musk highlighted that xAI’s app was excluded from Apple’s “Must-Have Apps” editorial guide, a key promotional space that drives downloads and visibility.

Apple and OpenAI Respond

While both Apple and OpenAI have yet to comment directly on the lawsuit, Apple had previously issued a statement on X, reiterating that its App Store curation process is “fair and free of bias.” The company also pointed out that other AI apps like DeepSeek a popular Chinese chatbot had ranked #1 on the App Store back in January, proving that visibility is not limited to OpenAI.

Apple has also reportedly been in talks with other AI companies, including Google’s Gemini AI and Anthropic’s models, for future integration into iPhones, indicating that OpenAI is not the sole player Apple is considering.

What This Means for the AI Industry

The lawsuit could have wide-ranging implications for the AI and app marketplace ecosystem. If Musk’s claims of manipulated rankings hold true, this could raise questions about platform neutrality, competition in digital marketplaces, and the growing dominance of a handful of AI companies.

As the legal battle unfolds, the spotlight will remain on Apple and OpenAI to defend their practices, while xAI positions itself as a challenger to the status quo. For now, the case underscores a larger debate in the tech industry: should App Store rankings be treated as neutral ground, or do partnerships create unfair advantages?