xAI takes Apple and OpenAI to court

High-tension legal clash: Elon Musk’s company, xAI, has sued Apple and OpenAI in the United States, claiming the existence of an exclusive agreement that would make ChatGPT the default generative engine on iPhone, with effects of competitive exclusion against rivals like Grok Reuters.

The cause in brief

  • Where: Federal court of Texas.
  • When: Filing of the appeal on August 25, 2025.
  • Who: Plaintiffs xAI and X Corp.; defendants Apple and OpenAI.
  • What is contested: Alleged exclusive agreement in the iPhone ecosystem and practices on the App Store considered discriminatory.
  • Requested remedies: Damages amounting to billions and injunctions against integrations and policies considered anti-competitive.

Content of the complaint

The appeal, spanning 61 pages, outlines an agreement between Apple and OpenAI that, according to the plaintiffs, would limit competitors’ access to key iOS features and user-generated prompt flows.

In this context, the management of the App Store is also contested, with alleged favoritism in rankings and delays in approving updates for competing apps Adnkronos.

According to the data collected by our editorial team during the analysis of the appeal, a large part of the accusations focuses on system integration mechanisms (system APIs, default settings) that can have lock-in effects on iPhone users.

Industry analysts consulted also note that the actual technical evidence (logs, ranking metrics, contracts) will be decisive for the judicial evaluation of the alleged exclusivity.

The key accusations

  • Restrictive agreement: A privileged integration of ChatGPT with Siri and other system services is reported, to the detriment of alternative solutions like Grok.
  • Data advantage: “Default” access to a large amount of prompts generated by users on iPhone, considered useful for training and refining models.
  • App Store: Alleged manipulation of rankings and delays in the approval of updates for competing apps.

Numbers and market context

In the appeal, the complainants indicate two key figures:

  • 65%: Share of the smartphone market in the USA attributed to Apple in the legal document; the figure is reported in the complaint but the methodology has not been made public independently. Independent market sources, however, indicate that Apple holds a US market share of over 50% in 2025 (see quarterly reports from analysts like Counterpoint Research).
  • 80%: Share of the generative chatbot segment attributable to OpenAI/ChatGPT according to the appeal estimates. This figure is strong but has not been confirmed by public reports and should be considered in light of the different metrics used (active users, interactions, revenues).

Why the accusation is crucial for the iPhone ecosystem

According to xAI, the potential exclusive agreement between Apple and OpenAI would consolidate dominant positions in both hardware and generative models, reducing space for alternative innovators.

An interesting aspect is the effect on default integrations between mobile platforms and AI providers: the outcome of the lawsuit could favor multi-provider solutions and more granular choices for users LSD Magazine.

The responses: what Apple and OpenAI say

OpenAI has defined the cause as «part of a pattern of harassment», while Apple, contacted for comments, has not released official statements Reuters.

Impact for users and businesses

  • iPhone Users: Possible changes in the integration of Siri, new default settings, and opt-in/opt-out modes for the use of external assistants.
  • Developers: Increased scrutiny on App Store policies, ranking metrics, and review times.
  • Startup IA: Potential openings for more equitable integrations or standardized interfaces for the use of third-party models.

Essential Timeline

  • June 2024: Apple introduces integrated intelligence features at the WWDC (initial announcement of “Apple Intelligence”) and continues the development of system APIs for AI functionalities Apple WWDC24.
  • 6 February 2025: The Department of Justice of the USA has initiated antitrust actions and significant complaints against practices in the smartphone market, marking increased regulatory interest in the sector.
  • August 2025: xAI formalizes the lawsuit in Texas on August 25, 2025, after weeks of growing public tensions.
  • Next steps: Preliminary hearings are expected, and possibly the request for a jury trial.

The protagonists: a comparison that comes from afar

Elon Musk, one of the co-founders of OpenAI, and Sam Altman, also among the founders of OpenAI, represent figures who have followed divergent paths after the organization’s inception.

It should be noted that, with the creation of xAI in 2023 and the launch of Grok, the confrontation between giants in the AI sector has intensified also on the legal and regulatory front iPhoneItalia.

What to expect in court

Antitrust cases require the demonstration of market harm, proven market power, and anticompetitive conduct. Proceedings can last for years and may result in fines, behavioral remedies (such as limits on exclusives), or injunctions that impose changes to existing contracts and integrations.

Analysis: what changes in mobile AI

The event highlights a turning point: generative AI is becoming an essential system function, no longer just an additional app.

If the judges accept xAI’s arguments, device manufacturers might be forced to offer users greater choice and interoperability between models, reducing lock-in practices and barriers to entry. At the same time, challenges related to security, privacy, and quality emerge in a multi-model context.

What to watch in the coming weeks

  • Any discovery requests on agreements between Apple and OpenAI and on the internal ranking metrics of the App Store.
  • Interventions and investigations by antitrust authorities in other jurisdictions.
  • Reactions of industry giants like Google and Meta on the positioning and integration of their models in mobile systems.

Source: https://en.cryptonomist.ch/2025/08/26/xai-takes-apple-and-openai-to-court-exclusive-agreement-on-iphone-the-us-antitrust-observes/