Elon Musk Sues Apple and OpenAI, Accuses Companies of Monopolizing Market — After CEO Claimed Tesla Billionaire Uses X to 'Benefit' Himself
Elon Musk thinks the AI market is being taken over by two companies, and now he's suing.
Aug. 25 2025, Published 2:30 p.m. ET
Elon Musk has once again found himself in a lawsuit, but this time he's the one looking for justice, RadarOnline.com can reveal.
Two of the billionaire's companies, his AI startup xAI and his social media platform X, have sued Apple and OpenAI, accusing both of an "anticompetitive scheme" against their rivals.
Details Of The Lawsuit
Musk is suing Apple and OpenAI, accusing them of a 'monopoly.'
According to the lawsuit, Apple and OpenAI have "colluded" to monopolize the smartphone and generative AI markets. It also accuses Apple of de-prioritizing "super apps" and AI chatbot competitors, including xAI’s Grok, in its App Store rankings, while pushing up OpenAI by integrating its ChatGPT chatbot into Apple products.
The complaint noted: "Unless the court enjoins Apple and OpenAI's unlawful conduct, defendants will continue to thwart competition, and their competitors, like plaintiffs, will continue to suffer the anticompetitive consequences."
Previously, Musk cried on X and claimed: "Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation."
"xAI will take immediate legal action," he added.
OpenAI CEO Calls Out Musk, His Former Business Partner
Apple is being accused of 'colluding' with OpenAI to dominate the artificial intelligence market.
In response, OpenAI CEO Sam Altman, who has been in a feud with Musk for years, said: "This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors and people he doesn’t like."
"I hope someone will get counter-discovery on this, I and many others would love to know what's been happening," he added after posting an article to back up his claims. "But OpenAI will just stay focused on making great products."
Musk co-founded OpenAI with Altman in 2015, but left the startup three years later due to not seeing eye-to-eye over the company's direction. The pair have already sued one another in the past.
While Apple previously said its App Store was designed to be "fair and free of bias," it has yet to respond to Musk's lawsuit.
Musk And His Lawsuits Headache
OpenAI CEO, Sam Altman, has been feuding with Musk for years.
Musk is trying to score a victory or two as he has recently found himself on the losing end of a lawsuit. The 54-year-old agreed to pay $500million and settle a lawsuit brought on by former Twitter employees, who accused Musk of not forking over their severance pay after he took over the company in 2022.
Two former staffers, Courtney McMillian and Ronald Cooper, had filed the original lawsuit against Musk, claiming Twitter's 2019 severance plan promised most employees at least two months of base pay plus a week of pay for every year of service. Senior staff were also owed six months of base pay.
However, according to the lawsuit, most workers did not get paid at all.
Musk bought Twitter for $44billion in 2022, changed the platform's name to X, and then cut around 6,000 jobs.
The Tesla billionaire already had to fork over $500million to former Twitter employees.
Musk should just set up shop inside of a courtroom because he has also been ordered by a judge to face a lawsuit claiming he ran an illegal $1million election lottery during Donald Trump's 2024 election run.
The World's Richest Man is being accused of defrauding voters into signing a petition to support the U.S. Constitution, offering a chance to win cash.
Arizona resident Jacqueline McAferty claimed that Musk and America PAC induced voters in several battleground states to sign the petition, promising to choose one person per day to win $1million. The lawsuit, filed on November 5, 2024, Election Day, notes the voters never had a chance to collect the winnings.
McAferty claims voters were required to provide personal information, including their addresses and phone numbers.
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While Musk attempted to have the suit dismissed, U.S. District Judge Robert Pitman, who was appointed by President Obama in 2014, pointed to other statements suggesting the defendants were "awarding" the money, and that the $1million could be "won."
Musk was not shy at all in his efforts to help Trump beat Kamala Harris in November, introducing his "lottery" to the country, but now it seems it will come back to bite him.
