Apple faces new pressure as Musk moves to sue

Elon Musk’s battle with Sam Altman took a dramatic turn Monday when the billionaire dragged Apple into their AI feud, threatening the tech giant with antitrust lawsuits over App Store rankings that he claims favor ChatGPT.

Musk threatened immediate legal action against Apple on August 12, 2025, accusing the iPhone maker of rigging its app store to block competitors from reaching the top spot. The Tesla CEO’s explosive claims came just two days after his company, xAI, opened free access to its Grok chatbot, setting up a high-stakes confrontation that could reshape how AI apps reach billions of mobile users.

The dispute isn’t just about rankings—it’s about who controls the gateway to artificial intelligence on smartphones. With Apple’s App Store generating approximately $20 billion in annual profit, the stakes couldn’t be higher for AI companies racing to capture the consumer market.

Musk Takes Aim at Apple’s Algorithm

Musk posted on X late Monday evening that Apple’s behavior constitutes an ‘unequivocal antitrust violation’ and announced his AI company would pursue immediate legal action. His primary complaint? The Tesla CEO claimed Apple makes it impossible for any AI company besides OpenAI to reach the coveted number one position in the App Store.

“They’re playing politics,” Musk wrote on X, questioning why his social media platform and Grok chatbot weren’t featured in Apple’s “Must Have” app recommendations. He didn’t provide evidence to support his antitrust allegations. Still, his timing was telling, coming just days after xAI made Grok 4 free for all users on August 10, 2025, removing usage limits to compete directly with OpenAI’s latest offerings.

Apple hasn’t responded to requests for comment about Musk’s threats. However, the silence speaks volumes in an industry where platform control determines who wins and who loses.

The OpenAI Partnership That Started It All

The roots of this conflict can be traced back to Apple’s partnership with OpenAI, announced at the Worldwide Developers Conference on June 10, 2024. That deal integrated ChatGPT directly into iOS, iPadOS, and macOS systems, letting users access the AI assistant through Siri and Apple’s Writing Tools without switching apps.

This deep integration gave OpenAI a massive advantage. ChatGPT currently holds the top position in the App Store’s ‘Top Free Apps’ category for iPhones in the United States, powered by GPT-4o technology.

Meanwhile, Grok sits in fifth place overall—a respectable position, but not the dominance Musk wants. The partnership raised eyebrows from the start. Critics wondered whether Apple was favoring one company in the AI race by granting it system-level access, while others struggled for visibility in the app store. Now Musk’s turning those questions into legal threats.

Evidence Contradicts Musk’s Claims

Here’s where Musk’s argument gets shaky. Despite his insistence that only OpenAI can reach number one, recent history tells a different story.

DeepSeek, a Chinese AI chatbot, reached the number one spot on Apple’s App Store in January 2025, knocking ChatGPT from its perch and holding the position for several days. That wasn’t a fluke—Perplexity AI also achieved the top ranking in India’s App Store in July 2025, demonstrating that non-OpenAI apps can and do reach the top spot.

Even Grok’s current performance contradicts Musk’s narrative of systematic suppression. While it’s fifth overall, the chatbot has climbed to second place in the productivity category. That’s hardly the burial Musk’s complaints suggest.

The real question isn’t whether other AI apps can reach number one—they clearly can. The question is whether Apple’s algorithm gives preferential treatment to certain partners, and if so, whether that crosses legal boundaries.

Apple’s Growing Antitrust Troubles

Musk’s threats land at a particularly vulnerable moment for Apple. The company’s facing antitrust pressure from multiple directions, with regulators and competitors circling like sharks.

A federal judge ruled in April 2025 that Apple had violated a court injunction in the Epic Games case, finding the company in contempt for willfully failing to comply with App Store competition requirements. That ruling came with potential penalties that could cost Apple billions of dollars.

The situation’s even worse in Europe. The European Union fined Apple €500 million in April 2025 under the Digital Markets Act for restricting app developers from directing users to cheaper alternatives outside the App Store. Apple lost its appeal in June 2025 to pause court orders requiring immediate reforms, with the Ninth Circuit Court of Appeals denying the company’s emergency stay request.

These mounting legal challenges suggest regulators are losing patience with Apple’s tight control over its ecosystem. Musk’s lawsuit, if filed, would add another front to Apple’s legal battles—and potentially provide ammunition for existing cases.

The Musk-Altman Feud Goes Public

What makes this dispute particularly explosive is the personal animosity between Musk and OpenAI CEO Sam Altman. Their exchange on social media Monday night turned nasty fast.

Altman responded to Musk’s accusations by calling them ‘remarkable’, given allegations that Musk manipulates X’s algorithm to boost his own companies and suppress competitors. He shared a 2023 Platformer article titled “Yes, Elon Musk created a special system for showing you all his tweets first” to make his point.

The exchange escalated when Musk called Altman a ‘liar’ regarding social media engagement metrics. At the same time, Altman shot back by challenging Musk to sign an affidavit denying that he has ever tweaked algorithms for personal gain. It’s the kind of public spat that would be entertaining if the stakes weren’t so high.

Their feud dates back years, rooted in Musk’s departure from OpenAI’s board and his subsequent criticism of the company’s transition from a nonprofit to a for-profit status. However, it is now spilling over into broader questions about platform control and fair competition.

Grok’s Big Gamble

Behind the legal threats lies a simple business reality: xAI needs users, and lots of them. Grok 4 was launched on July 9, 2025, with the company boldly claiming it as “the most intelligent model in the world,” featuring native tool use and real-time search integration.

The decision to make Grok free just a month later suggests the paid model wasn’t attracting enough users to compete with ChatGPT’s massive install base. By temporarily removing usage limits, xAI aims to capture users before they commit to competing platforms.

But free access alone won’t guarantee success if users can’t find the app. That’s why App Store rankings matter so much—they determine which AI tools casual users discover and try first. For a company burning through capital to compete in the AI arms race, visibility is equivalent to survival.

The Bigger Picture for AI Competition

This isn’t just about Musk versus Altman or even Apple versus developers. It’s about who controls the future of AI on mobile devices.

With over one billion iPhone users worldwide, Apple’s App Store serves as a critical gateway for AI companies trying to reach consumers. The platform’s ranking algorithms don’t just influence downloads—they shape which AI technologies become household names.

The controversy highlights a fundamental tension in the tech industry. Platform owners, such as Apple, want to maintain control and extract value from their ecosystems. Meanwhile, app developers need fair access to compete on merit rather than connections.

As AI becomes increasingly central to our interaction with technology, these gatekeeping questions become more urgent. Should platform owners be allowed to favor certain AI partners? Can they integrate some services at the system level while relegating others to the app store? Where’s the line between curation and anticompetitive behavior?

What Happens Next

If Musk follows through on his legal threats, Apple could face yet another courtroom battle over App Store practices. But lawsuits take time, and the AI market’s moving at breakneck speed.

The immediate impact might be reputational rather than legal. By publicly accusing Apple of bias, Musk is forcing the company to defend its ranking algorithms and partnership decisions. That scrutiny could benefit all developers, not just xAI.

Apple might also adjust its algorithms or promotional practices to avoid further controversy. The company’s already under pressure from regulators worldwide to open up its ecosystem. Adding Musk’s voice to that chorus—backed by his considerable social media following—increases the pressure.

For consumers, the news is good. Competition between AI platforms is driving rapid innovation, forcing companies to offer better features and more competitive pricing. If Musk’s complaints lead to more transparent App Store practices, users win.

The Stakes for Apple

Apple finds itself in an impossible position. The company built its reputation on seamless user experiences and curated ecosystems. But that same approach now looks anticompetitive to regulators and rivals.

The OpenAI partnership made strategic sense—it provided Apple with cutting-edge AI capabilities without requiring them to build them in-house. But it also created the appearance of favoritism that competitors like Musk can exploit.

With antitrust scrutiny intensifying globally, Apple can’t afford to dismiss these complaints. The company needs to demonstrate that its App Store operates fairly, even as it pursues partnerships that blur the lines between platform and participant.

The Human Cost of Platform Wars

Lost in the corporate drama are the developers and users caught in the middle. Smaller AI companies, lacking Musk’s resources or Altman’s connections, struggle for visibility in an ecosystem where rankings determine survival.

These platform battles also impact innovation. When companies spend resources fighting over app store placement instead of improving their products, progress slows. The energy going into legal threats and social media feuds could be channeled into making AI more valuable and accessible.

There’s also the question of user choice. Should iPhone owners be limited to whatever AI Apple chooses to integrate? Or should they have equal access to all competing services? These aren’t just business questions—they’re about digital freedom and consumer rights.

Looking Forward

The Musk-Apple confrontation is unlikely to be resolved quickly. Legal challenges can take months or years to wind their way through the courts. But the public nature of this dispute ensures it won’t be ignored.

Other AI companies are watching closely. If Musk’s pressure tactics work—either through legal victories or public pressure—expect more developers to challenge platform owners. The era of quiet acceptance of App Store rules might be coming to an end.

For Apple, the challenge is balancing its business model with growing demands for openness. The company can’t abandon its curated approach entirely without losing what makes iOS distinctive. But it also can’t maintain total control without facing escalating legal and regulatory challenges.

Key Takeaways:

• Musk threatened to sue Apple on August 12, 2025, claiming antitrust violations due to App Store rankings that allegedly favored ChatGPT over his Grok AI.
• DeepSeek and Perplexity both reached number one on Apple’s App Store in 2025, contradicting Musk’s claims of OpenAI exclusivity.
• Apple faces multiple antitrust battles, including a €500 million fine from the EU and a contempt ruling against Epic Games.
• The Musk-Altman feud escalated with mutual accusations of algorithm manipulation on their respective platforms.
• xAI made Grok 4 free to all users on August 10 to compete with ChatGPT’s market dominance
• The conflict raises critical questions about who controls AI distribution to over one billion iPhone users worldwide.