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A Texas federal judge refused Thursday to toss an antitrust lawsuit accusing Apple and OpenAI of conspiring to box out rivals through their blockbuster deal placing ChatGPT directly inside Apple’s operating systems — a partnership Elon Musk’s xAI brands as a digital chokehold on competition.

U.S. District Judge Mark T. Pittman denied both companies’ motions to dismiss, opting instead to keep the legal brawl alive while hinting that a jury may never see it. In a brief but pointed order, he said the dispute appears “better suited” for summary judgment, signaling that the case may be resolved through legal arguments rather than courtroom theatrics.

“This is not a judgment on the merits,” the judge cautioned, adding that he reached the decision only after “a thorough review” of the filings.

A ‘Tale of Two Monopolists’

Musk’s Companies Claim Apple Locked Out Rivals

Musk-owned X Corp. and xAI sued in August, characterizing the Apple-OpenAI partnership as a “tale of two monopolists” joining forces to freeze emerging generative AI competitors out of the market.

Announced in June 2024, the integration folds ChatGPT into iPhone, iPad, and MacOS features, granting the chatbot what xAI calls a “prime gatekeeper position” on hundreds of millions of Apple devices.

The complaint argues users effectively cannot choose alternative chatbots such as xAI’s Grok, leaving ChatGPT as the only generative AI system harvesting billions of prompts from Apple’s customer base.

“This makes it nearly impossible for competitors to scale and innovate,” the lawsuit claims, accusing both companies of violating the Sherman Act and the Texas Free Enterprise and Antitrust Act.

The plaintiffs want the court to block Apple and OpenAI from maintaining what they say is an exclusive arrangement.

Tech Titans Fire Back

‘Lawfare,’ Nonexclusive Deal, and Competing Narratives

OpenAI dismissed the lawsuit as “lawfare,” accusing Musk of trying to cripple innovation out of rivalry, not legal principle. Apple argued that the deal is explicitly nonexclusive, insisting the arrangement never barred partnerships with other chatbot developers.

Apple said the claims “boil down to the assertion that it was unlawful for Apple to integrate with ChatGPT first.”

But xAI countered that the practical effect — not the contract wording — proves exclusivity. They argued no other chatbot has ever been integrated into Apple’s Intelligence system, making Apple and OpenAI’s conduct the true measure of exclusivity.

Claims Trimmed, But the Heart of the Lawsuit Survives

While Musk’s companies originally raised broader claims, Judge Pittman’s latest decision leaves the core antitrust allegations intact. The judge also emphasized that he was not taking sides but keeping the pathway open for a later legal reckoning.

An OpenAI spokesperson said the lawsuit aligns with Musk’s “ongoing pattern of harassment,” adding the company looks forward to disproving his claims in court.

Counsel for Apple and xAI did not immediately comment.