Elon Musk’s artificial intelligence company, xAI, has filed a major lawsuit against Apple and OpenAI, accusing both tech giants of unfairly blocking competition in the booming AI market.

The suit, filed Monday in a federal court in Texas, claims Apple and OpenAI “locked up markets” to protect their dominance while sidelining rivals like Musk’s X and xAI’s Grok chatbot.

According to the filing, Apple’s deep partnership with OpenAI — which brought ChatGPT integration into iPhones, iPads, and Macs — leaves no room for competitors. xAI further alleges that Apple deliberately avoids giving visibility to its Grok app in the App Store, making it harder for users to access alternative AI tools.

“If not for its exclusive deal with OpenAI, Apple would have no reason to refrain from more prominently featuring the X app and the Grok app in its App Store,” the lawsuit argues.

xAI is demanding billions of dollars in damages.

An OpenAI spokesperson dismissed the case, saying it fits into Musk’s “ongoing pattern of harassment.” Apple has not yet commented.

Musk has long criticized Apple’s App Store practices, even threatening legal action earlier this month, claiming Apple makes it “impossible for any AI company besides OpenAI to reach #1.”

The lawsuit comes as competition in the AI space intensifies. ChatGPT, backed by Microsoft, became the fastest-growing app in history after its late 2022 launch. Meanwhile, Musk’s xAI, founded in 2023, has been expanding rapidly, acquiring X for $33 billion earlier this year to boost its chatbot training and integrating Grok into Tesla vehicles.

Legal experts say the case could have far-reaching implications. With Apple’s dominance in the smartphone market, courts may take the antitrust claims seriously.

“This case could provide courts with their first opportunity to define the boundaries of the AI market in antitrust law. It’s a canary in the coal mine,” said Christine Bartholomew, law professor at the University at Buffalo.

If successful, the lawsuit could reshape not just how Apple runs its App Store but also how AI competition is regulated globally.