Apple and OpenAI now need to defend themselves in court after a federal judge refused to dismiss a lawsuit filed by Elon Musk’s X Corp. and xAI. The case argues that both companies worked together in a way that hurts competition in the fast-growing AI market. The judge’s order keeps the legal fight alive and forces all sides to prepare detailed arguments.
The lawsuit began in late August 2025 after Musk complained that his apps X and Grok did not appear in the App Store’s Must Have section. xAI claimed that Apple was “blindsided by major innovations in AI,” which pushed the company to rely heavily on OpenAI. The filing also said Apple created a “desperate bid to protect its smartphone monopoly” by integrating ChatGPT into Siri while ignoring deals with other chatbot makers.
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Reports from Bloomberg and statements in the court filing say xAI argued that this setup gives iPhone users “no choice but to use ChatGPT, even if they would prefer to use more innovative and imaginative products like xAI’s Grok.” xAI also accused Apple of “deprioritizing” rival chatbot apps and blocking Grok from the kind of data access that Siri receives through ChatGPT.
How Apple and OpenAI Responded
Apple and OpenAI pushed back earlier this month. Lawyers for both companies said the case is flawed because there is no exclusive deal in place. Apple’s filing said the company plans to work with multiple AI partners, not just OpenAI. OpenAI called Musk’s claims a “campaign of lawfare,” pointing to his long feud with CEO Sam Altman, who co-founded the company with Musk years ago.
xAI says it once requested an integration with Apple Intelligence, but Apple turned it down. Because of that, the lawsuit argues that Apple harmed consumer choice and innovation by favoring OpenAI’s chatbot inside the operating system.
What Happens Next
Judge Mark Pittman gave no detailed explanation in his written order. He simply rejected the dismissal request and instructed all parties to file further arguments. xAI wants the court to stop what it calls an “anticompetitive scheme” and to help it “recover billions in damages.”
The case, formally listed as X Corp. v. Apple in the Northern District of Texas, now moves into a more intense stage. Both sides must present stronger evidence as the court weighs whether Apple’s use of OpenAI inside the iPhone unfairly limits competition in the AI industry.
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