Elon Musk Sues Apple and OpenAI Over AI on iPhones

A federal judge in Texas has allowed Elon Musk's companies to move forward with a lawsuit against Apple and OpenAI. On November 13, 2025, Judge Mark Pittman rejected Apple and OpenAI's request to throw the case out of court, which means the case will continue into the next phase of legal proceedings.

Musk's companies claim that Apple broke antitrust laws—rules designed to stop companies from unfairly blocking their competitors from the market—by making ChatGPT the only AI chatbot built directly into iPhones. Both Musk's companies and his xAI artificial intelligence company are seeking billions of dollars in damages.

What the Lawsuit Claims

Musk's companies argue that Apple has created an unfair advantage for ChatGPT while making it nearly impossible for other AI services, including Musk's own Grok AI, to reach the same level of prominence on Apple devices. Think of it like Apple building a special lane on its highway just for one car company's vehicles.

The lawsuit also says Apple deliberately made Grok load more slowly in its app store and delayed reviewing updates to the Grok app. These actions, according to the case, go beyond Apple simply preferring one partner to another—they suggest Apple was actively working to keep competitors from succeeding.

Apple announced its partnership with OpenAI in June 2024. The company had looked at working with other AI companies, including Meta, but chose OpenAI instead.

More Legal Battles Happening

This lawsuit is just one of several legal cases involving OpenAI right now. The New York Times is suing OpenAI separately over how the company uses copyrighted articles to train its AI. Musk's company xAI filed another lawsuit accusing OpenAI of stealing trade secrets. Courts have also turned down some broad requests for internal documents in AI cases, showing that judges are treating AI lawsuits like other business disputes rather than giving them special treatment.

Beyond OpenAI, other AI companies face legal challenges too. In 2022, an attorney sued GitHub, Microsoft, and OpenAI over an AI coding tool, marking one of the early cases in what is becoming a longer list of AI-related disputes.

Apple Facing Its Own Pressure

Apple is also dealing with other legal and investor concerns. In May 2026, the company agreed to pay $250 million to settle a lawsuit from shareholders who said Apple was moving too slowly to add AI features to its products. That large payment suggests investors worry that Apple is falling behind its competitors in AI development.

Shareholders have also questioned Apple's choice of OpenAI as a partner, and Apple had to defend that decision publicly.

The broader context here is worth noting. We saw similar legal battles in the 1990s when Microsoft faced antitrust cases over exclusive partnerships with other companies. Those cases set rules for how courts evaluate whether exclusive deals unfairly block competitors. The current dispute with Apple and OpenAI follows the same basic pattern: a large company that controls a popular device makes an exclusive deal with one AI partner, and competitors cry foul.

Why This Case Matters

Apple built ChatGPT directly into the iPhone's operating system rather than just putting it in Apple's app store where other AI services compete equally. This choice gives users an easier experience—they don't need to download a separate app—but it also means competing AI services have a harder time reaching iPhone users.

From a practical standpoint, this case raises a fundamental question: Should AI services be treated like other software that can compete equally on a device, or can companies treat them as essential features they can control exclusively.

The broader stakes are worth spelling out. Antitrust law was written long before AI existed, and courts are now trying to apply old rules to new technology. The judge's decision in this case could set new precedent about whether traditional competition laws actually work for regulating AI. If Musk wins, it might force companies to be more careful about making exclusive AI deals. If he loses, companies will likely feel freer to build exclusive partnerships with AI providers.

The case will also probably reveal internal emails and documents between Apple and OpenAI during discovery—the phase where companies have to hand over internal records to lawyers. Those documents could show whether Apple intentionally tried to exclude competing AI services or simply preferred working with OpenAI.

What Happens Next

How this case turns out could reshape the entire AI industry. Google, Microsoft, Amazon, and other big tech companies are all making their own choices about how to add AI to their products. They're deciding whether to build AI in-house, partner with just one company, or build systems that support multiple AI services. This lawsuit may influence those decisions.

The challenge ahead is clear: courts will need to figure out how old competition rules apply to brand-new technology. As this case moves forward, it will likely help set the rules for how AI develops on the devices people use every day.