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- Musk is Suing Sam Altman & Apple... Again...
Musk is Suing Sam Altman & Apple... Again...
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The $500 Billion AI War That Will Decide Everything
Warning: What you're about to read will make you question everything you thought you knew about Big Tech.
Elon Musk just declared nuclear war on Apple and OpenAI.
And the stakes? Only the future of humanity.
Here's what really happened on August 25, 2025 — and why most people completely missed the point.
The Lawsuit That Changes Everything
Musk's xAI filed a 61-page federal lawsuit in Texas. But this isn't just another rich guy tantrum.
This is about control of the most powerful technology ever created.
The lawsuit claims Apple (65% smartphone market) and OpenAI (80% AI chatbot market) are illegally conspiring to crush competition. Together, they're called "two monopolists joining forces" in the court documents.
Here's where it gets interesting.
The Real Story Behind the Numbers
You probably heard about ChatGPT being built into iPhones. What you didn't hear is the $1 billion deal that made it happen.
Apple needed AI fast. Google and Samsung were already there.
So they cut a deal with OpenAI in June 2024. ChatGPT got direct access to "billions of user prompts from hundreds of millions of iPhones."
Think about that for a second.
Every time you ask Siri something, ChatGPT learns. Every prompt, every question, every interaction — it all feeds OpenAI's machine.
But here's the kicker.
Musk claims Apple is now rigging their App Store rankings. His Grok app has a million reviews and a 4.9 rating. Yet Apple won't put it on any featured lists.
On the day he filed the lawsuit, Musk posted: "A million reviews with 4.9 average for @Grok and still Apple refuses to mention Grok on any lists."
Critics point out that DeepSeek and Perplexity have hit #1 on the App Store even after the OpenAI deal. But Musk isn't backing down.
The Feud That Started It All
This goes way deeper than you think.
Musk and Sam Altman co-founded OpenAI in 2015. It was supposed to be a nonprofit. "For the benefit of humanity at large."
Then money got involved.
In 2017, they realized they'd need hundreds of millions to build real AI. Musk wanted to convert OpenAI to for-profit with himself as CEO.
The other founders said no.
Musk left in February 2018. And withdrew his planned investments.
Since then? OpenAI has exploded.
They launched ChatGPT in late 2022. Hit $1 billion in monthly revenue by July 2025. Now they're targeting a $500 billion valuation.
That would make them the most valuable private company in history.
Musk's Revenge Play
Meanwhile, Musk built his own AI empire.
He launched xAI in 2023. Then in March 2025, he did something brilliant.
xAI acquired X (formerly Twitter) in an all-stock deal. xAI valued at $80 billion. X at $33 billion.
Remember when everyone said Musk overpaid $44 billion for Twitter? This merger made X investors whole.
But the real genius move?
xAI now has access to all of X's real-time social media data. Perfect for training Grok.
That's over 100 million daily active users sharing thoughts, reactions, and conversations in real time.
The Numbers Game
Let's talk about what's really at stake:
OpenAI: Going for $500 billion valuation (up from $157 billion in October 2024)
Apple: Generated $201 billion from iPhone sales alone in 2024
xAI Holdings: Worth over $100 billion after the X merger
SpaceX: Hit $350 billion valuation in December 2024, eyeing $400 billion
We're not talking about small money here.
Why This Matters to You
You might think this is just billionaires fighting.
You're wrong.
Whoever controls AI controls everything. Search. Shopping. Entertainment. Work. Communication.
The Apple-OpenAI partnership gives ChatGPT access to a billion iPhones worldwide. That's unprecedented data collection and user reach.
And here's what nobody's talking about.
The Real Manipulation
Musk claims Apple is "deprioritizing the apps of competing generative AI chatbots" in the App Store.
If true, that means Apple decides which AI you get to use easily. Which AI gets promoted. Which AI gets buried.
Your choice in AI assistants gets made for you by Apple's algorithms.
Currently, Grok ranks fifth in the App Store's free apps. ChatGPT is first.
Coincidence? Musk doesn't think so.
What OpenAI Says
OpenAI calls this "Mr. Musk's ongoing pattern of harassment."
They've used this exact phrase before.
This is Musk's second major lawsuit against OpenAI. The first was in March 2024 for breach of contract. He claimed they became a "de facto subsidiary" of Microsoft.
OpenAI fired back in April 2025 with their own lawsuit. They accused Musk of an "unlawful campaign of harassment" including a "sham" $97.4 billion takeover bid.
Nobody's playing nice.
The Bigger Picture
The Department of Justice already has a separate antitrust case against Apple.
This lawsuit could benefit from that momentum.
But proving illegal monopolization is hard. You need to show the arrangement has no legitimate business purpose and harms consumers.
Apple will argue they needed AI features fast. OpenAI was the obvious partner.
What Happens Next
Legal experts say antitrust cases involving tech platforms are complex.
Market definitions matter. Competitive effects matter.
This could take years to resolve.
But the damage is already done.
The lawsuit exposes the behind-the-scenes deals that shape your digital life.
It shows how a few companies can control access to the most powerful technology ever created.
And it reveals that the AI race isn't just about building better chatbots.
It's about who gets to control the future.
The Bottom Line
Whether Musk wins or loses, this lawsuit changes everything.
It forces us to ask: Should two companies control how billions of people access AI?
Should Apple decide which AI apps get promoted?
Should exclusive deals lock out competitors from reaching users?
The answers will shape the next decade.
This isn't just about Elon Musk vs. Sam Altman anymore.
This is about whether we'll have real choice in the AI-powered future.
Or whether that choice gets made for us.
Sources: This report is based on court documents filed August 25, 2025, and reporting from Al Jazeera, CNBC, The Verge, Wired, The New York Times, Reuters, BBC, CNN, Business Insider, and other major news outlets. All market valuations and financial figures come from company filings and verified financial reporting.
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