The crypto world is reeling as Elon Musk, the maverick behind xAI and X Corp, has launched a legal bombshell against Apple and OpenAI, accusing them of orchestrating an AI monopoly through the exclusive integration of ChatGPT into iPhones. Filed on August 26, 2025, the lawsuit alleges that this partnership stifles competition, with OpenAI dominating over 80% of the generative chatbot market, leaving rivals like Musk’s Grok struggling to break through.
The fallout has been immediate and brutal. AI-related tokens have plummeted over 7%, marking them as the day’s worst-performing sector in a market already jittery from regulatory uncertainties. This sharp decline reflects investor concerns over the potential ripple effects of Musk’s antitrust claims, which could reshape the AI landscape and its tokenized ecosystems.
Musk’s move comes amid growing tensions, with the lawsuit painting Apple and OpenAI as colluding to lock out innovators, a charge that has sparked heated debate. As the legal battle unfolds, the crypto community watches closely will this be a turning point for AI competition, or just another twist in Musk’s ongoing feud with his former OpenAI co-founder, Sam Altman?