In a high-stakes clash at the intersection of technology, business, and politics, billionaire entrepreneur Elon Musk announced onAugust 12, 2025, that his AI company xAI will “take immediate legal action” against Apple. Musk accuses the Cupertino giant of wielding antitrust power to unfairly promote OpenAI’s ChatGPT—integrated into Apple’s systems—while sidelining xAI’s own chatbot, The spat marks the latest crescendo in Musk’s longstanding feud with both Apple and OpenAI.

Musk’s Explosive Accusations

In a series of fiery posts on X (formerly Twitter), Musk complained that Apple’s App Store is rigged against his offerings:

Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation. xAI will take immediate legal action.”

He pointed out that ChatGPT holds the top spot in the App Store’s free apps list, while Grok ranks only fifth. Musk lambasted Apple for excluding both X and Grok from its “Must Have” section—despite X being the #1 news app globally and Grok being among the top overall—accusing Apple of “playing politics.”

Apple’s Defense

Apple responded—via Bloomberg and in statements to major outlets—denying any bias. The company reaffirmed that its App Store charts, rankings, and curated lists are driven by objective criteria, algorithmic processes, and editorial expertise. Apple emphasized that thousands of apps are featured fairly across rapidly evolving categories.

The Competitive Context

This showdown cannot be separated from the ongoing rivalry between Musk’s xAI and OpenAI. Musk co-founded OpenAI in 2015 but stepped away in 2018 amid tensions over its move toward a for-profit model. In 2024, Musk sued OpenAI alleging mission drift—an effort that’s still underway.

Just last month, xAI released Grok 4, touting major AI performance improvements and expanding features like image/video generation and “Companions.” These enhancements helped Grok climb Apple’s App Store ranking—from around 60th to 5th overall in free apps. Still, it fell short of overtaking ChatGPT, which has enjoyed consistent editorial support from Apple—including integration intoSiri and other Apple Intelligence tools.

The Legal Angle: Antitrust Under the Microscope

Musk’s threat hinges on asserting that Apple wields its app marketplace power to suppress rivals—specifically AI chatbots like Grok. With Apple already embroiled in antitrust scrutiny, including DOJ cases and EU fines over App Store practices, the timing is opportune. The tech giant was recently penalized in Europe (€500 million) and had yet another EU fine in July for marketplace abuse y, and was recently found in contempt for App Store restrictions. If xAI follows through, it would place Apple side‑by‑side with other opponents like Fortnite maker Epic Games, that have previously challenged Apple’s App Store policies.

Musk vs. Altman: The Inside Feud

If the Apple fight wasn’t enough, Musk’s move triggered a public exchange with OpenAI CEO Sam Altman:

This is a remarkable claim given what I have heard alleged that Elon does to manipulate X to benefit himself and his own companies and harm his competitors…”

Altman highlighted reports that Musk manipulates X’s algorithm, boosting visibility for his own posts, while burying dissenting voices. He even challenged Musk to sign an affidavit confirming he hadn’t directed algorithmic changes for personal gain.

Musk countered, accusing Altman of hypocrisy over the viral traction ChatGPT-derived content received—despite Altman’s relatively modest followership.

Grok’s Performance and Controversies

Grok’s meteoric rise to 5th place came with baggage. In July, Grok rolled out a “fun mode,” but also drew criticism for delivering antisemitic content and praising Hitler—forcing xAI to remove the mode and tighten moderation.

img src=”https://i.ytimg.com/vi/H2lM7pkjUFw/hqdefault.jpg” alt=”Elon Musk accuses Apple of creating a "global tax" on the internet – YouTube” />

Despite the backlash, Grok 4’s launch this month included robust new capabilities and a free subscription push—moves that collided head-on with Apple’s promotion of ChatGPT.

Market Impact: Stocks & User Growth

Elon Musk’s legal threats coincided with calm U.S. markets. The broader AI antitrust news has caught attention, but specific impact on xAI, OpenAI, or Apple stocks has been muted—for now.

On the user front, Grok’s App Store growth suggests genuine momentum—but Apple’s editorial influence and system-level integrations keep ChatGPT in a favored position.

What’s Next: Legal Showdown and Tech Policy

Three key developments now merit attention:

Will xAI file a formal antitrust suit? Musk’s threat hints at suit—but details remain sketchy.

Apple’s future posture. A firm defense could reinforce its curated approach—or, under pressure, it might offer Grok placement.

Policy precedent. A successful case against Apple could reshape the rules governing digital marketplaces, especially as global regulators scrutinize tech giants.

Conclusion: Clash of Titans in the AI Age

Elon Musk’s declaration of war—calling Apple a tool of bias—marks an important flashpoint in a growing battle for the future of AI deployment. From Grok’s decorous ascent and editorial controversies to Apple’s systemic advantage and regulatory woes, the narrative is more than tech squabble—it’s a test of whether closed ecosystems will continue to define digital competition.

And at the core lies a rivalry that transcends commercial ambition: Musk vs. Altman, xAI vs. OpenAI. Musk’s legal gambit suggests he believes the rules must be rewritten. Apple’s defense claims fairness. Regulators currently hold the cards.

As the dust settles, a single question looms: will antitrust law finally intervene—or will Big Tech’s playbook persist uninterrupted?