Apple has denied allegations that its partnership with OpenAI unfairly disadvantaged Elon Musk’s artificial intelligence startup, xAI. The dispute centers on Apple Intelligence, which launched last year with ChatGPT as its first integrated chatbot in iOS 18, iPadOS 18, and macOS Sequoia.
According to a new report from Bloomberg, Apple’s lawyers argued in a court filing that selecting OpenAI was a strategic decision, not an anti-competitive move. The company stated that it has no intention of restricting rivals, noting it is “widely known that Apple intends to partner with other generative AI chatbots” over time.
Musk’s xAI has gained traction with its Grok chatbot, but Apple’s decision to debut with OpenAI gave that service a major advantage in mainstream adoption. Musk claims the arrangement harms fair competition by restricting access to Apple’s ecosystem. Apple countered by stressing that its strategy is not exclusive and that other providers, including xAI, may be added in future iOS updates. These concerns echo earlier disputes, such as Musk’s Apple lawsuit over Grok, where similar arguments were raised about Apple’s influence on platform access.
Apple has faced pressure to accelerate its artificial intelligence features after rivals like Google and Microsoft integrated large language models earlier. Working with OpenAI provided Apple with an immediate way to deliver advanced generative features in Apple Intelligence while continuing to build its own models in the background.
Antitrust authorities in the U.S. and Europe are already scrutinizing partnerships in the AI sector, and Apple’s insistence on an “open” approach could help reduce the risk of formal challenges. This is not the first time Musk has accused Apple of unfair practices – earlier this year he filed App Store antitrust claims and argued that Apple shows bias in its App Store decisions. Apple rejected those allegations, and now its legal team is once again drawing clear lines between competitive strategy and anti-competitive conduct.
The dispute underlines how competitive the generative AI landscape has become. Apple, OpenAI, and xAI are all vying for user attention as generative tools become embedded in core consumer platforms. For Apple, OpenAI was the first step – but the company appears intent on leaving the door open to future partners, including Musk’s xAI, to avoid the perception of favoritism.
