
Elon Musk‘s artificial intelligence company xAI has filed a major federal lawsuit against tech giants Apple and OpenAI. The 61-page complaint was submitted to a Texas court on Monday, August 25, 2025. Both xAI and Musk’s social media platform X are listed as plaintiffs in the case.
The lawsuit accuses Apple and OpenAI of working together to stop competition in the AI market. According to the Reuters, the two companies have created an unfair partnership that hurts other AI companies. The legal action claims Apple controls 65% of the US smartphone market while OpenAI holds at least 80% of the AI chatbot market through ChatGPT.