Elon Musk, the CEO of Tesla and SpaceX and a prominent figure in the AI landscape, has recently escalated his criticism of Apple, focusing on the company’s burgeoning artificial intelligence offerings and its longstanding App Store policies. Speaking on CNBC’s Squawk Box, Silicon Valley journalist and Fortune contributing editor Michal Lev-Ram highlighted the key issues Musk raised and discussed their broader implications for the technology industry at large.

A Renewed Scrutiny of Apple’s AI and App Store

Apple, one of the world’s most valuable companies with a market cap exceeding $3 trillion, unveiled a suite of AI-powered features in 2025, including deep integrations with OpenAI’s GPT models in iOS and macOS. These features, under the brand “Apple Intelligence,” represent Apple’s response to competition from Google, Microsoft, and Amazon in the generative AI space.

However, Musk has accused Apple of leveraging its dominant App Store platform to stifle competition, particularly citing alleged preferential treatment toward partners like OpenAI. He has also raised alarms regarding user privacy and data security, arguing that deeper AI integration may compromise the standards Apple is known for.

“There are some really valid issues that Elon Musk raises with Apple, especially around antitrust and platform favoritism,” Lev-Ram explained. “As Apple ramps up its AI ambitions, questions about fair access and privacy safeguards become central—especially as regulators in the U.S. and Europe step up their scrutiny.”

Musk’s Long-Standing Tensions with Big Tech AI

Musk’s criticisms are rooted in his foundational role in OpenAI and his ongoing leadership of xAI, a rival AI company. In June 2025, Musk openly condemned Apple’s partnership with OpenAI, declaring his intention to ban Apple devices from his companies due to privacy concerns if deeper OpenAI integration proceeds without what he called meaningful user protections.

His concerns echo a broader sentiment in the AI community about the concentration of power among a few tech giants. “We risk a future where a handful of platforms determine the fate of AI development, innovation, and user rights,” Musk has stated in recent speeches. “The industry must put transparency and open access above profit and market share.”

Apple’s Response: Privacy at the Forefront?

Apple has distanced itself from the criticisms, reaffirming its longstanding commitment to user privacy. The company emphasizes that its new AI features process as much data as possible on-device, minimizing reliance on cloud infrastructure and outside partners. Apple claims that even its use of OpenAI’s models comes with “strict data minimization policies” and that user consent is required before any external data sharing.

Tim Cook, Apple’s CEO, stated during the 2025 World Wide Developers Conference (WWDC), “At Apple, privacy is a fundamental human right. Our new AI tools are engineered with privacy embedded at every level.”

Yet, critics argue that the closed nature of the App Store and Apple’s tight control over app approvals still disadvantages competitors—especially those also developing AI products.

Antitrust Pressures Grow Worldwide

Antitrust regulators in the United States, European Union, and United Kingdom have already initiated probes into Apple’s App Store practices. The European Digital Markets Act, in particular, forces companies like Apple to offer alternative app stores and payment methods to foster competition. The U.S. Department of Justice has also filed a major antitrust lawsuit against Apple in 2024, in part due to the company’s restrictive App Store policies.

Lev-Ram pointed out, “The increasing regulatory clampdown has significant implications for future AI deployment. Apple must now innovate within tight legal boundaries, which could impact the breadth and speed of its AI rollout.”

The Broader AI Race and Industry Outlook

The AI industry is in a phase of rapid expansion, with worldwide spending on AI expected to surpass $500 billion by 2026, according to IDC. Tech giants are racing to build the leading AI platforms, while startups continue to push for open-source alternatives to challenge incumbents. Musk’s criticisms reflect the ongoing debate about platform neutrality and the ethical deployment of advanced AI models.

Customers, developers, and regulators alike are scrutinizing how AI products are integrated into consumer devices and the underlying business practices driving this adoption. With Apple and OpenAI deepening their partnership, and competitors like Google and Microsoft investing heavily in their own AI ecosystems, questions about fair access, privacy, and competitive balance are becoming more urgent than ever.

What’s Next for Apple, Musk, and the AI Sector?

Industry experts anticipate that Apple will need to provide greater transparency about its AI technologies and potentially ease restrictions within its App Store to address antitrust concerns. As government pressures intensify, all players in the AI race—Apple, OpenAI, xAI, Google, Microsoft, and others—face heightened accountability to ensure their technologies serve users fairly, securely, and innovatively.

Lev-Ram concluded, “The next 12 to 24 months will be pivotal. How Apple and its rivals respond to regulatory and competitive challenges will shape not just their futures, but the trajectory of artificial intelligence worldwide.”