Eliza Labs and founder Shaw Walters filed a federal antitrust lawsuit towards social media platform X on Aug. 27.
In accordance with the lawsuit, the plaintiffs are alleging that the social media platform fraudulently extracted technical details about their AI brokers earlier than deplatforming them and launching competing merchandise.
The grievance seeks damages exceeding $75,000 and rapid restoration of the account.
In an Aug. 28 assertion, Walters described the lawsuit as a final resort after months of failed negotiations.
He stated:
“X and xAI understand this on some stage – they only filed a lawsuit alleging that Apple and OpenAI are doing the identical anticompetitive conduct to them that X is doing to us.”
Walters added that X initially invited collaboration after seeing widespread adoption of Eliza’s open-source AI agent framework.
Following conferences at X headquarters in February, the platform demanded Eliza buy a $600,000 annual enterprise license regardless of already paying over $20,000 yearly in charges.
Antitrust claims
An antitrust lawsuit challenges practices that hurt truthful competitors, resembling monopolies and anticompetitive habits, to guard customers and guarantee open markets.
Eliza’s grievance alleges X violated Part 2 of the Sherman Act by leveraging monopoly energy in short-form social media to suppress AI competitors.
The lawsuit particulars how X suspended Eliza’s accounts in June 2025, then demanded in depth technical documentation beneath the pretense of account reinstatement.
Walters claims that X used this info to develop practically equivalent AI options, together with 3D avatars, voice integration, and phone capabilities, which have been launched by xAI’s merchandise.
He added that X requested detailed explanations of Eliza’s framework structure, endpoint performance, and implementation specifics whereas growing competing merchandise.
Treatments embrace platform restoration
The lawsuit seeks a number of types of reduction, together with a declaratory judgment that X lacks Part 230 immunity for anticompetitive deplatforming, injunctions stopping future exclusionary conduct, and account restoration with full platform entry.
Financial treatments embrace disgorgement of X’s unjust enrichment from copying Eliza’s expertise, compensation for fraudulent misrepresentation, and unfair competitors damages, in addition to treble damages beneath the Sherman Act provisions.
The plaintiffs additionally request punitive damages and attorneys’ charges. The lawsuit comes days after Elon Musk’s xAI sued Apple and OpenAI on Aug. 25.
Musk’s lawsuit alleged that the businesses conspired to suppress AI competitors by Apple’s unique ChatGPT integration and App Retailer favoritism. The lawsuit claims Apple’s partnership with OpenAI makes it “inconceivable for any AI firm moreover OpenAI to achieve #1 within the App Retailer.”
The parallel litigation highlights escalating authorized battles over AI market management, with Musk pursuing antitrust claims whereas going through very related allegations from Eliza Labs.
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