Elon Musk has escalated his battle with OpenAI and its CEO Sam Altman. In response, on Monday he filed a lawsuit against the two companies. The complaint alleges that Apple and OpenAI have formed an illegal agreement to stifle competition in the emerging arms race over artificial intelligence. Musk’s claims surfaced earlier this month when he posted on X, alleging that it is “impossible for any AI company besides OpenAI to reach #1 in the App Store.”
Musk’s unsolicited offer of $97.4 billion to acquire OpenAI was rejected. The company quickly and then abruptly turned down his offer, setting the stage for the ensuing lawsuit. His lawsuit is most focused on what he sees as a departure from OpenAI’s early stay non-profit mission. This latest development is just the continuation of a long and public feud between Musk and Altman. Their disputes have sometimes taken the form of public spats on social media platforms.
Musk’s lawsuit argues that Apple has joined forces with OpenAI to ensure its continued supremacy in the smartphone market. As an example, he argues that early on this partnership limited competition and innovation within the AI space.
“In a desperate bid to protect its smartphone monopoly, Apple has joined forces with the company that most benefits from inhibiting competition and innovation in AI: OpenAI, a monopolist in the market for generative AI chatbots,” – Elon Musk’s lawsuit against Apple and OpenAI.
The legal fight comes as Apple is on its own mission to take over the AI space. The firm has launched new Apple Intelligence capabilities, such as ChatGPT connection with iOS 18-2 last June. Collaborative features from Apple are expected to be released in December, which raises questions about the competitive landscape of the AI sector.
Musk and Altman’s increasingly personal public spat is still ringing bells. On August 12, 2025, Altman shot back on Twitter in response to Musk’s accusation, adding even more fire to the speculation surrounding the former partners’ rocky connections. The two men have publicly traded blows over the future of AI and the ethical obligations that accompany these exciting new technologies.
Amanda Silberling, a senior writer at TechCrunch who covers the intersection of technology and culture, noted the implications of this lawsuit for both companies and the broader tech industry.
Musk’s lawsuit could have a huge effect on the future of Apple and OpenAI. Particularly given the speed of the AI space, this case could make a lasting impact on future competition, if not precedent.