Apple Faces Criticism by Elon Musk: AI Advancements Blocked for Superiority Over OpenAI
In a bold move, Elon Musk's AI startup, xAI, has announced its intention to file a legal case against Apple, alleging antitrust violations related to the App Store rankings. Musk claims that Apple's ranking system unfairly favors OpenAI's ChatGPT app, making it "impossible for any AI company besides OpenAI to reach #1 in the App Store."
The dispute centers on xAI's AI chatbot, Grok, which competes directly with ChatGPT. As of August 2025, ChatGPT ranks #1 among free apps on Apple's U.S. App Store, while Grok is significantly lower, around #5 or #6. Musk accuses Apple of favoritism, especially since Apple formed a high-profile partnership with OpenAI in 2024, integrating ChatGPT into its devices.
Musk publicly questioned why xAI's apps (X and Grok) are not given higher placement, suggesting political motives behind Apple's ranking decisions. OpenAI CEO Sam Altman dismissed Musk's claims as remarkable, pointing out Musk's past tactics to manipulate his own platforms.
This isn't Apple's first clash over App Store control. In April, the EU fined Apple €500 million ($587 million) for restrictive practices. The dispute between Musk and Apple adds to the broader impact of highlighting tech giants' control over AI distribution, potentially pressuring Apple's 30% App Store fees and ranking algorithms under regulatory scrutiny.
The dispute between Musk and Apple adds to growing antitrust scrutiny over Apple's control of app distribution and partnerships in the AI sector. A group of users, known as Wall Street Apes, argue that Apple's deep integration of ChatGPT into its devices gives it a massive advantage, and users should have the freedom to choose alternatives like Grok.
However, another user, Sean Saulsbury, downplays the antitrust uproar, suggesting that Apple's bias is obvious but irrelevant to most users who rarely pay attention to ranking charts. As of the latest reports, a formal lawsuit filing has been announced but it is not clear if the case has officially commenced in court yet.
[1] TechCrunch. (2025). Elon Musk's AI startup xAI plans to sue Apple over App Store rankings. https://techcrunch.com/2025/08/12/elon-musks-ai-startup-xai-plans-to-sue-apple-over-app-store-rankings/
[2] The Verge. (2025). Elon Musk accuses Apple of favoring OpenAI's ChatGPT over his AI app Grok in the App Store rankings. https://www.theverge.com/2025/08/12/21360489/elon-musk-accuses-apple-favoring-openais-chatgpt-app-store-rankings
[3] CNBC. (2025). Elon Musk's AI startup plans to take 'immediate legal action' against Apple over alleged unfair treatment of its AI app. https://www.cnbc.com/2025/08/12/elon-musks-ai-startup-plans-to-take-immediate-legal-action-against-apple-over-alleged-unfair-treatment-of-its-ai-app.html
- The ongoing dispute between Elon Musk's AI startup, xAI, and Apple over allegations of antitrust violations has stirred up a conversation about the tech industry's control over AI distribution, with some financial authorities like Wall Street Apes advocating for increased regulation and user freedom.
- The confrontation between Musk's xAI and Apple also highlights the potential impact of technology giants' strategic partnerships on the fintech sector, as Apple's partnership with OpenAI in 2024 prompted allegations of favoritism towards OpenAI's ChatGPT app.
- As fintech businesses continue to leverage artificial intelligence (AI) and machine learning technologies, the legal case brought forth by xAI against Apple could have ripple effects across the business world, challenging the status quo of App Store fees and ranking algorithms.
- The technology industry is keeping a close eye on the development of the legal case between Elon Musk's AI startup, xAI, and Apple, as it may serve as a turning point in regulating the App Store's control over AI-driven businesses and their access to consumers.
