Eliza Labs Sues Elon Musk’s X Corp Over Monopoly Abuse and Copycat AI Products
Tech startup takes on trillion-dollar titan in landmark AI lawsuit.
Monopoly Power Play
Eliza Labs accuses X Corp of systematically crushing competition through predatory pricing and data hoarding—classic moves from the 'embrace, extend, extinguish' playbook that would make 90s Microsoft blush.
AI IP Theft Allegations
The lawsuit claims Musk's company blatantly copied proprietary AI architectures mere weeks after Eliza's research papers went public. Because why innovate when you can appropriate?
Market Domination Tactics
X Corp allegedly leveraged its social media monopoly to throttle Eliza's visibility while boosting its own clone products—a vertical integration trick that would impress even Rockefeller's ghost.
Legal Reckoning Looms
This case could force regulators to finally address tech's monopoly problem—or become another footnote in Silicon Valley's 'too big to care' era. Either way, lawyers get paid.
X Corp Accused of Pressuring Eliza Labs Into $600K Annual License
The filing alleges that X pressured Eliza Labs and its founder, Shaw Walters, to adopt an “Enterprise License” costing $50,000 per month, or $600,000 annually.
After Eliza declined, its account, along with Walters’, was abruptly suspended. The suit claims this was part of a broader effort to eliminate competition and launch similar AI products under X’s own brand.
“This case involves X Corp wielding its incredible monopoly power with perceived immunity from suit to deplatform users,” the complaint reads, adding that the company sought to “restrain competition” in the race to launch AI agents on its platform.
Eliza Labs is known for elizaOS, an open-source protocol for autonomous AI agents reportedly valued at $2.5 billion.
Shaw is suing X for anti competition
the OG eliza repo used X’s graphQL endpoints (that our front ends query) to read and write to X. It did not use X’s paid API. The repo has been banned off GitHub but forks still live on and are functional
Funny to see Elon bully him here. X… pic.twitter.com/E68UYuJUf1
In April, the company rolled out a no-code AI launchpad aimed at democratizing agent development for non-programmers.
The lawsuit further accuses X of orchestrating a “coordinated, fraudulent, and anticompetitive effort” to gain access to Eliza’s development methods and leverage them for its own offerings. X has not publicly responded to the claims.
Ethereum Gaming Network XAI Sues Elon Musk’s xAI Over Trademark Clash
Last week, Ex Populus, the company behind the Ethereum-based gaming platform XAI,also filed a trademark infringement lawsuit against Elon Musk’s artificial intelligence company, xAI.
The legal dispute centers on alleged marketplace confusion between Ex Populus’s federally registered “XAI” trademark and Musk’s similarly named venture, launched shortly after.
Ex Populus claims Musk’s xAI crossed into its territory when he announced plans to launch an AI game studio in late 2024, amplifying confusion among consumers.
The company noted instances where xAI’s chatbot Grok incorrectly referred to Ex Populus’s XAI brand as part of Musk’s operations, further blurring the line between the two.
The lawsuit also cited reputational damage stemming from Musk’s controversial public persona and incidents involving xAI’s AI assistant making inflammatory remarks.
Ex Populus argued that the confusion has undermined its brand identity and notes that the U.S. Patent and Trademark Office has already suspended some of Musk’s xAI trademark applications.
Meanwhile, xAI has recently voiced plans to sue Apple over alleged antitrust violations, claiming the tech giant unfairly favors OpenAI’s ChatGPT in App Store rankings while suppressing xAI’s Grok chatbot.
