Why Elon Musk is threatening to sue Apple over Grok's App Store ranking

Elon Musk took to his social media platform X on Monday to warn Apple (AAPL) that his artificial intelligence company, xAI (XAAI.PVT), would take “immediate legal action” against the tech giant to fix what Musk alleged is anticompetitive conduct by its App Store.

Musk alleged that the App Store refused to feature both X and Musk’s AI chatbot, Grok, in its prominently promoted list of apps. Apple did not immediately respond to a request for comment on Musk’s claims.

“Apple is behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in the App Store, which is an unequivocal antitrust violation,” the billionaire Tesla (TSLA)CEO and owner of Grok creator xAI wrote on X. “xAI will take immediate legal action.”

“Hey @Apple – App Store, why do you refuse to put either 𝕏 or Grok in your ‘Must Have’ section when 𝕏 is the #1 news app in the world and Grok is #5 among all apps?” Musk asked in another post, inquiring if Apple’s ranking system was used for “playing politics.”

He added, “And why is ChatGPT literally in every list where you have editorial control?” ChatGPT, xAI’s rival chatbot, is operated by OpenAI (OPAI.PVT).

Apple entered a collaboration with OpenAI in 2024 that uses OpenAI’s technology to fuel Apple’s branded Apple Intelligence. The feature allows Apple devices that use its voice command service, Siri, to generate written content and perform device tasks.

Apple’s website describes its App Store as “a highly curated” store where “every app is reviewed by experts and an editorial team.” In addition to human oversight, Apple also uses automated tools to affect app discovery and rankings and to moderate user reviews.

Musk has been embroiled in litigation against OpenAI, which he co-founded in 2015 with OpenAI’s current CEO, Sam Altman. Originally co-founded as a nonprofit, Musk separated himself from the AI firm over disagreements regarding how to move forward with the venture.

Musk later started his competing AI company, xAI. His lawsuit, which is scheduled for trial in March, seeks to prevent OpenAI’s conversion to a for-profit enterprise and centers around a $45 million donation that Musk contributed to fund the startup. He claims that the donation was contingent on OpenAI remaining a nonprofit organization.

Altman contends Musk wanted to merge OpenAI into his for-profit electric vehicle company, Tesla, so that Tesla could provide it with additional funding.

Altman and Microsoft have called Musk’s allegations “false” and claimed he has no legal basis for blocking OpenAI’s for-profit conversion.

Alexis Keenan is a legal reporter for Yahoo Finance. Follow Alexis on X @alexiskweed.