xAI accused the pair of teaming up in a way that puts competing artificial intelligence (AI) technologies at a disadvantage.

The complaint, brought to a federal court in Texas, focuses on Apple’s decision to incorporate OpenAI’s ChatGPT into its smartphone software. The plaintiffs argued that this exclusive integration gives OpenAI an unfair head start and limits the visibility and usability of other AI chatbots.

According to the lawsuit, the arrangement between the two tech firms allowed OpenAI’s chatbot to gain better positioning in the App Store. As a result, download numbers rose, and alternative generative AI tools saw less exposure and user growth.

The filing also claimed that OpenAI now has access to large volumes of personal queries and interactions from Apple users, which it would not have gathered without the partnership.

Musk’s companies argued that the deal provides no clear business justification for exclusivity. Instead, they stated that it is a decision that makes it harder for rivals to grow and compete in the rapidly expanding AI industry.

Furthermore, the lawsuit suggested that Apple is intentionally reducing the visibility of apps that offer functions or compete directly with ChatGPT, including xAI’s own chatbot, Grok. These practices reinforced Apple and OpenAI’s hold over their respective markets and shut out alternatives.

Meanwhile, xAI was recently sued by the Ethereum-based gaming network Xai. Why? Read the full story.

The case, filed in the Northern District of California, accuses xAI of trademark infringement and unfair competition.

Xai is run by Ex Populus, a Delaware firm that said it has used the “XAI” mark in US commerce since June 2023. That name appears in its blockchain gaming network, its XAI token, and tools that support gaming logic, digital rewards, AI-driven features, and transaction management.

According to the filing, confusion started after Musk launched xAI in July 2023. The problem became more serious in November 2024 when Musk announced that his company planned to open a gaming studio.

Xai argued that people mistakenly believed the two ventures were related, with examples including customers, media reports, and even xAI’s chatbot Grok linking them together.

Ex Populus claimed its reputation has been harmed because Musk’s public controversies and criticism of xAI products have led to negative views spilling over onto Xai.

The complaint also accuses Musk’s lawyers of trying to pressure Ex Populus by threatening to challenge its registration. At the same time, the US Patent and Trademark Office has already suspended several of xAI’s trademark applications.

Xai is asking the court to block Musk’s company from using the disputed name in gaming or blockchain-related services, cancel xAI’s pending applications, and award damages.

Meanwhile, Musk recently said that xAI plans to take Apple to court. What happened? Read the full story.

He claimed that Apple’s system prioritizes OpenAI’s ChatGPT, which makes it harder for other AI services, including his chatbot Grok and the X app, to be seen.

Musk argued in an August 12 post on X that the App Store’s setup prevents any AI tool other than ChatGPT from reaching the top position. He described this as a violation of competition rules and said his company would take legal action.

At the time of his comments, Grok was listed in sixth place on the “Top Free Apps” chart for iPhone users in the US, while ChatGPT was in first place. Musk pointed out that being high on these lists can greatly affect how many people try an app.

He also questioned why Apple’s “Must Have” section leaves out both Grok and X. In one pinned post, he wrote:

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. Are you playing politics? What gives?

The Grok account also posted about the situation. It said Apple’s curation favors AI tools like ChatGPT over new ones.

Recently, Musk announced that Tesla has officially ended work on its Dojo AI training computer. What did he say? Read the full story.

The announcement drew attention online, especially after Rus Yusupov, one of Vine’s original co-founders, posted a video of himself on X lip-syncing to Musk’s AI-related comments.

The clip, which seems to include AI-generated elements, may be an early preview of the new version of the app.

Yusupov launched the token in January 2025, which hinted at the app’s return at the time by sharing a waitlist link.

The idea of bringing Vine back has been floating around for a while. Twitter, now known as X, acquired Vine in 2012 for approximately $30 million but shut it down in 2017.

In January 2025, Musk mentioned that he was exploring the idea of a Vine reboot. By March, he had reportedly asked an employee at xAI, his company focused on artificial intelligence, to take charge of the project.

Following the news, a Solana
SOL


$186.25

-based token called Vine Coin experienced a price surge. It had been trading quietly for months but jumped from a market cap of $42.2 million to a peak of $86.7 million.

Recently, OpenAI introduced a new “agent mode” for ChatGPT, which is available to users on the Pro, Plus, and Team plans. How does the agent mode work? Read the full story.

The deal, published on July 22, expands the existing Stargate I site in Abilene, Texas. In January, OpenAI shared plans to roll out 10 GW of AI infrastructure across the US, but this new step pushes that target even further.

OpenAI CEO Sam Altman shared the news on X, and called it a “gigantic infrastructure project”. He added that over one million GPUs are expected to be online by the end of 2025.

This new agreement brings the Stargate project’s total development pipeline to more than 5 GW. That amount of power could support over two million AI chips.

Altman mentioned that OpenAI is planning to exceed its original $500 billion commitment for Stargate.

Following OpenAI’s announcement, Elon Musk revealed that xAI is aiming to reach the equivalent of 50 million H100 AI chips within five years. According to a post by another X user, that would be 500 times more computing power than last year’s most powerful AI supercomputer.

xAI’s upcoming Colossus 2 system is expected to run on 550,000 GB200 chips, which together match about 5.5 million H100s.

Additionally, xAI recently signed a $200 million agreement with the US Department of Defense. What does the deal cover? Read the full story.