Elon Musk just dropped a bombshell, threatening Apple with immediate legal action over alleged antitrust violations in the App Store. This bold move pulls the tech giant into a heated public feud between Musk and OpenAI’s Sam Altman. It’s a clash of titans with big implications for AI, competition, and market fairness.
According to CNBC, this dispute centers on Musk’s claim that Apple unfairly promotes OpenAI’s ChatGPT over his xAI’s Grok chatbot, escalating a long-standing rivalry with Altman while challenging Apple’s App Store policies.
Let’s rewind to 2018, when Musk stepped down from OpenAI’s board after bringing Andrej Karpathy to Tesla for its Autopilot team. He later expressed concerns about AI’s risks, calling it “potentially more dangerous” than nuclear weapons. This marked the beginning of a rift with Altman, a co-founder of OpenAI.
Fast forward to late 2022, when OpenAI launched ChatGPT to the public, quickly gaining traction. By 2023, Musk and Altman’s disagreement turned legal, with Musk accusing Altman of breaching the contract by straying from OpenAI’s original nonprofit mission. Musk even asked a federal court to block OpenAI’s shift to a for-profit model, though a California judge denied this request.
During this period, Musk founded xAI in March 2023, unveiling it months later and raising billions in funding. He merged it with X, pushed for Tesla to pour billions more into xAI, and built a platform to rival OpenAI. Meanwhile, OpenAI’s valuation soared, with recent talks of a stock sale pegging it at roughly $500 billion.
In early 2025, Musk-led investors offered a staggering $97.4 billion to gain control of OpenAI. This aggressive bid underscored the high stakes of their rivalry. It’s a battle not just for technology, but for influence and market dominance.
Mid-2024 saw Apple partner with OpenAI to embed ChatGPT into iPhones, iPads, Macs, and desktops. This deal boosted ChatGPT’s visibility, placing it at the top of the App Store’s free apps list and in the coveted “Must-Have Apps” section. Meanwhile, xAI’s Grok languishes at fifth place, absent from Apple’s highlighted categories.
Musk didn’t hold back, alleging bias and stating, “Apple is behaving in a manner” that blocks competitors from reaching the top spot. He’s now vowing “immediate legal action” against Apple for what he calls a clear antitrust violation. This isn’t just a complaint—it’s a direct challenge to Apple’s market power.
Apple, for its part, defends its practices. A spokesperson insisted the App Store is “designed to be fair” and focused on safe user discovery. They claim to collaborate with developers to boost visibility in dynamic categories, but Musk isn’t buying it.
Why the disparity? Musk publicly asked why neither X, the world’s top news app, nor Grok appears in Apple’s “Must-Have” section. This question resonates with those skeptical of Big Tech’s gatekeeping power and its impact on free markets.
Adding fuel to the fire, Grok has faced its issues, with releases promoting false claims in 2025 about sensitive topics. Musk called these “unauthorized modifications,” but they’ve raised safety concerns. Meanwhile, competitors like China’s DeepSeek and India’s Perplexity have topped App Store charts in their regions, showing the field isn’t entirely locked down.
Apple isn’t new to scrutiny over App Store policies. In 2021, a judge ruled Apple couldn’t stop developers from bypassing its in-app purchase system, which charges up to a 30% fee. More recently, in mid-2025, judges denied Apple’s bid to delay mandated changes stemming from a clash with Epic Games, piling on regulatory pressure.
For investors, this saga is a reminder of the risks and rewards in the AI race. OpenAI’s $500 billion valuation talk shows massive potential, but Musk’s xAI is a wildcard worth watching—especially with his 224 million followers on X amplifying his message, compared to Altman’s 3.9 million. Be cautious, though—X’s follower counts may include bots, per undisclosed platform data.
What can you do? Keep an eye on antitrust developments, as they could reshape Big Tech’s control over app ecosystems, potentially opening doors for smaller players. If you’re invested in AI or tech stocks, diversify to hedge against legal or policy shocks, and stay frugal—markets hate uncertainty, and this feud is far from over.