Eliza Labs Accuses X Corp of AI Technology Theft

Eliza Labs sues X Corp. for alleged AI technology theft and unfair competition.

AI firm Eliza Labs has filed a lawsuit against X Corp., founded by Elon Musk. The company is accused of abusing its “monopoly position” and engaging in unfair competition.

According to the lawsuit, X Corp. obtained key technical information from the startup, released similar AI products, and then blocked the accounts of the project and its founder, Shaw Walters, on the social network of the same name. The freeze occurred without warning or explanation.

The plaintiffs stated that X Corp. used its “monopoly position” to eliminate a competitor in the AI agents market on its platform.

The statement claims that the blocking was preceded by attempts by the company to force Eliza Labs to purchase a corporate license costing $50,000 per month. The project declined the offer.

Representatives of the startup believe that X Corp.’s actions were a “coordinated, fraudulent, and anti-competitive attempt” to obtain money and technical data about their development processes.

Eliza Labs is the creator of the open-source protocol elizaOS, valued at $2.5 billion. In April, the company launched the platform auto.fun for creating, launching, and monetizing AI agents.

Earlier in August, the Ethereum-based gaming network XAI accused the Musk-backed startup xAI of trademark infringement and unfair competition.