AI company Eliza Labs has filed a lawsuit against X Corp. The startup claims that the platform illegally blocked its account and copied its work to launch its own AI products. The lawsuit also states that X allegedly tried to impose unfavorable conditions for accessing its API.
Accusations of Unfair Competition
In a lawsuit filed in federal court in San Francisco, Eliza Labs and its founder Shaw Walters said that X Corp used its monopolistic position to eliminate a competitor in the AI agent market. According to the plaintiffs, the platform deleted the accounts of both the company and its founder without prior warning or explanation.
Eliza claims that the block came after X obtained important technical information from them. The startup refused to switch to a corporate subscription costing $50.000 per month or $600.000 per year, which X allegedly pushed aggressively before deactivating the account.
Suspicions of Using Insider Knowledge
In its statement, Eliza said that X’s actions were “coordinated, fraudulent, and anti-competitive,” aimed at obtaining money and access to the startup’s technical developments. The case refers to processes related to building open-source software for autonomous AI agents.
About Eliza Labs
Eliza Labs is developing the open-source protocol elizaOS, valued at $2,5 billion. In April, the company launched a platform for creating AI agents without programming skills — a so-called no-code launchpad.
The company stated that X’s attempts to use its ideas while simultaneously blocking its access to the platform violate antitrust law and undermine competition in the market. Eliza Labs is now awaiting a response from X Corp.
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