Most recently, Elon Musk has filed a lawsuit against OpenAI. He filed a lawsuit against the company—and its CEO, Sam Altman—in a California federal court. This lawsuit follows on the heels of Musk having threatened to do the same against Apple. Musk’s company, xAI, is certainly not doing the same in the hyper-competitive landscape of artificial intelligence. It’s in a three way competition against Microsoft-backed OpenAI and Chinese backed startup DeepSeek.
Musk had co-founded OpenAI with Altman in 2015, initially as a nonprofit devoted to artificial intelligence research. Now, with xAI having launched less than two years ago and recently acquiring social media platform X for $33 billion, Musk is positioning his company as a formidable competitor in the AI market. The underlying lawsuit charges OpenAI and Apple with engaging in anti-competitive collusion to restrict competition within the AI industry.
Allegations of Anti-Competitive Practices
Musk’s lawsuit is clearly aimed to win the public relations war, Musk’s allegations against Apple and OpenAI. He alleges they are employing illegal measures to prevent competition to xAI. The lawsuit claims that these companies have “locked up markets to maintain their monopolies and prevent innovators like X and xAI from competing.” Musk contends that Apple’s partnership with OpenAI has created a bias that favors OpenAI’s products while sidelining competitors.
Or, as Musk argues in this lawsuit, Apple would have no incentive to bury xAI’s Grok chatbot, its primary competitor, on its App Store. He says this is only made possible by their private arrangement with OpenAI. He focused on Grok’s very high average rating of 4.9 from a million reviews. Despite that, Apple continues to exclude it from being showcased at all.
“A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists.” – Elon Musk
This suit seeks to address the damage done by these corporations. It seeks billions of dollars in damages, underscoring the fierce competition and high stakes in this digital space race.
The Broader Implications for AI and Antitrust Law
The plaintiffs’ lawsuit could still evolve into a landmark case for U.S. courts. It would provide them with their first opportunity to define a competitive market for generative AI technologies, and to clarify how existing antitrust laws apply in that market. AI-related technological developments have proven to be accelerants of discrimination and harm, antitrust experts say, that makes the treatment of AI-related disputes even more serious and complex.
Christine Bartholomew, a legal expert, remarked on the implications of the case, stating, “It’s a canary in the coal mine in terms of how courts will treat AI, and treat antitrust and AI.” This perspective highlights the broader impact that the outcome of this lawsuit could have on future AI innovations and competition.
Musk’s actions, namely the direction OpenAI was taking, have led to criticism on both sides. They claim the lawsuit is an example of an “ongoing pattern of harassment.” In short, they claim Musk’s inimitable success has attracted his legal challenges unduly and to distract from the amount of competition he faces.
“This latest filing is consistent with Mr. Musk’s ongoing pattern of harassment.” – OpenAI spokesperson
Tesla’s Integration of AI Technologies
Beyond his constant courtroom warfare, Musk has made AI a key focus to the point of obsession within his automotive ventures. So much so that his company Tesla has embedded the Grok chatbot into its cars, proving to the world the real-world capabilities of his AI tech. This integration is just one example of Musk’s focus on improving AI technology and its application in multiple industries.
Even as the litigation moves forward, it’s sure to draw intense scrutiny. Both the tech industry and legal experts will be watching. This unprecedented outcome would pose enormous implications for Musk and his companies. It would fundamentally change the competitive landscape for AI technologies generally.
