X Corp, the entity behind Elon Musk’s lawsuit, has moved to dismiss its case against Apple, which alleged that the tech giant showed favoritism toward OpenAI over apps developed by xAI. Filed in September 2026, the motion to dismiss comes as questions still loom about the lawsuit’s foundation and legal footing.
Background: The Allegations & Legal Timeline
The lawsuit was initiated in August 2025 and accused Apple of giving preferential treatment to OpenAI when curating its App Store, at the expense of competitors, including xAI. Part of the claim focused on accusations that Apple manipulated rankings or spotlighted apps in ways that advantaged OpenAI.
Over the past year, multiple developments have added complexity to the case. For instance, apps unrelated to OpenAI have occasionally held top App Store positions—DeepSeek in January 2025, Perplexity in July 2025—contradicting the claim of continuous favoritism. SensorTower data also showed that Grok, xAI’s app, reached the top rank in February 2025 after Grok-3 was made free.
What the Motion Says & Court Updates
The September 14, 2026 court filing specifically asks for Apple’s removal from the lawsuit; OpenAI remains included as a defendant. The motion doesn’t elaborate on whether the case is being settled or if there’s recognition that the original claims lack sufficient legal merit.
Meanwhile, discovery has revealed points of tension: the lawsuit accused xAI of evidence destruction and withholding. Apple’s leadership was compelled in part to turn over documents—Engineer-SVP Craig Federighi was designated a document custodian. A request to similarly name CEO Tim Cook was denied. Also, a judge ordered forces xAI founder Elon Musk’s emails into the public record.
Open Questions & What to Watch
It remains unknown what motivated the decision to seek dismissal now—whether new evidence undercuts the claims, or strategic considerations are driving a pullback. Legal analysts will be watching how the court responds, especially given Apple’s and xAI’s standing, and whether the case proceeds against OpenAI alone.
Notably, the motion to dismiss is specific to Apple—it does not ask for the suit’s dismissal in its entirety. That signals that X Corp still sees value in pursuing claims against OpenAI, or that the allegations involving Apple proved harder to prove.
This lawsuit taps into larger debates over App Store power, platform neutrality, and anticompetitive conduct. As app marketplaces become battlegrounds for control over AI tools, the outcome of this motion—or whether the case survives in any form—could shape how platforms curate content and whether regulatory scrutiny intensifies going forward.
