Apple and OpenAI Request Dismissal of Elon Musk's xAI Antitrust Lawsuit

TLDR

Table of Contents

Apple and OpenAI filed motions to dismiss a lawsuit from Elon Musk’s xAI claiming their partnership creates an anticompetitive monopoly in AI
xAI is seeking billions in damages, alleging Apple deprioritizes X app and Grok chatbot in the App Store due to the OpenAI deal
Apple argues its ChatGPT partnership is not exclusive and the company plans to integrate other AI chatbots in the future
OpenAI accuses Musk of conducting a “campaign of lawfare” through multiple lawsuits against the company
The lawsuit was filed in August 2025 after Apple announced ChatGPT integration into iOS in June 2024

Apple and OpenAI have asked a federal judge in Fort Worth, Texas to dismiss a lawsuit filed by Elon Musk’s artificial intelligence company xAI. The lawsuit claims the two companies engaged in anticompetitive practices through their partnership.

🚨BREAKING: Apple says it did nothing wrong in choosing to partner with OpenAI rather than Elon Musk’s xAI.
Apple’s lawyers said that even if the company teamed up with OpenAI 1st, it intends to partner with other AI chatbots in the future. Apple is asking to dismiss the case. pic.twitter.com/A5Od2aIZFW
— DogeDesigner (@cb_doge) October 1, 2025

xAI filed the case in August 2025 alongside Musk’s social media platform X. The companies allege that Apple and OpenAI created an arrangement to block AI competitors from the market. They claim Apple gives preferential treatment to OpenAI’s ChatGPT while downranking other AI apps.

The lawsuit seeks billions of dollars in damages. xAI argues that Apple has no reason to prominently feature the X app or Grok chatbot in its App Store because of what they call an “exclusive” deal with OpenAI.

Apple announced its partnership with OpenAI in June 2024. Under the agreement, ChatGPT was integrated into the operating systems for iPhones, iPads and Macs. Users can access ChatGPT features directly through Apple devices.

In their court filing, Apple’s lawyers disputed the characterization of the deal as exclusive. They stated that Apple publicly intends to partner with other generative AI chatbots in the future. The company argued that antitrust laws do not require it to partner with every AI chatbot simultaneously.

Apple’s Defense Arguments

Apple’s legal team said the antitrust injury claimed by xAI and X relies on speculation. They noted that xAI appears to expect Apple to partner with every generative AI chatbot regardless of quality, privacy concerns, safety considerations or technical feasibility. Apple maintains this is not required under antitrust law.

The company also addressed claims about App Store rankings. xAI and X accused Apple of deprioritizing what they call “super apps” and competing AI chatbots like Grok.

OpenAI’s Response

OpenAI filed a separate motion to dismiss the case. The company’s lawyers accused Musk of conducting a “campaign of lawfare” against OpenAI and ChatGPT. They referenced earlier lawsuits Musk has filed against the company.

OpenAI’s legal team argued that xAI has not demonstrated actual harm from ChatGPT’s integration into certain iPhone features. They stated that xAI failed to show the type of anticompetitive harm targeted by antitrust law.

Musk co-founded OpenAI with CEO Sam Altman in 2015 as a nonprofit organization. He later left the company and started xAI as a competitor. Musk is also pursuing a separate lawsuit against OpenAI in California federal court to block its conversion from a nonprofit to a for-profit business.

Musk owns both X and xAI. In March 2025, xAI acquired the social network X in an all-stock transaction. The combined deal valued xAI at $80 billion and X at $33 billion in equity.

The Grok chatbot is owned by xAI. Musk also serves as CEO of Tesla and SpaceX. xAI did not respond to requests for comment on the dismissal motions.

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