On August 25, 2025, Elon Musk’s companies xAI (Musk’s AI app) and X (formerly Twitter) filed a federal antitrust complaint against Open AI and Apple. The filing of the complaint took place in Fort Worth, Texas.
Understanding the Complaint
First of all, what is an antitrust complaint? An antitrust complaint is a report filed by a person or business to government agencies (like the U.S. Department of Justice) to report businesses that violate antitrust laws (e.g. price-fixing, bid-rigging, monopolization, etc.)
Apple and OpenAI agreed that Apple would integrate ChatGPT into IOS, making ChatGPT “the only generative AI chatbot integrated into the iPhone”. The plaintiffs (Musk’s companies) say that this will materially advantage ChatGPT over rival AI softwares. The plaintiffs also alleged that Apple de-prioritizes competing AI apps in App Store rankings and slows app review processes.
The 61 page complaint claims that this conduct is a coordinated scheme by two monopolists (only supplier of a specific product), Apple and OpenAI, to harm competition and protect their monopolies (smartphones and generative chatbots). The plaintiffs ask the court to stop the conduct and award damages.
What plaintiffs (X/xAI) must prove
Sherman Act, Section 1 : Restraint of Trade
- Show an agreement (contract, conspiracy, etc) between Apple and OpenAI.
- Prove that the agreement has the purpose of unreasonably restricting competition (unreasonable restraint of trade).
- Prove the restraint affects trade across state lines (interstate commerce)
Sherman Act, Section 2 : Monopolization/Attempt/Conspiracy
Attempted Monopolization
- Prove the monopolists had a dangerous probability of achieving monopoly power in the AI market.
- Anticompetitive conduct (unfair advantage) to achieve monopoly power.
Conspiracy to Monopolize
- Agreement between the 2 companies (Apple and OpenAI) to acquire monopoly power.
- Had the intent to monopolize.
- Took action in furtherance of the conspiracy.
State Antitrust (Texas Free Enterprise & Antitrust Act of 1983)
- Same as federal law BUT allows the plaintiffs to get damages under Texas law.
- Must prove harm to Texas consumers/businesses.
- Must prove monopolization within Texas market.
Conclusion
Elon Musk’s lawsuit against Apple and OpenAI centers on the fact that the two companies conspired to favor ChatGPT on Iphones and block competitors from fair access to users.
Under Sherman Act Section 1, Musk has to prove that there was an actual agreement between the two companies that unreasonably restrained trade. Under Sherman Act Section 2, Musk has to prove that Apple and OpenAI have monopoly power and are using it to exclude competition.
Finally, he almost must prove the intentional acts that the companies took to carry out the alleged conspiracy. This case will be an uphill battle for both parties, and definitely closely watched from both the tech and legal worlds.
Sources
- Complaint : X CORP. and X.AI LLC vs. Apple INC. and OpenAI LP (https://s3.documentcloud.org/documents/26073662/xai-vs-apple-and-openai.pdf)
- U.S. Department of Justice : Antitrust Laws (https://www.justice.gov/atr/antitrust-laws-and-you)
- Reuters – “Elon Musk’s xAI