Eliza Labs Files Antitrust Lawsuit Against Elon Musk’s X Corp Over AI Competition Dispute

Eliza Labs has initiated an antitrust lawsuit against X Corp, alleging the social media giant Leveraged its "incredible monopoly power" to suspend the AI firm's account after extracting proprietary technical knowledge. Filed in San Francisco federal court, the complaint accuses X of developing copycat AI products following confidential discussions with Eliza founder Shaw Walters.

The dispute centers on X's alleged demand for $50,000 monthly enterprise licensing fees from AI developers. Eliza claims it refused these "exorbitant" terms before being abruptly deplatformed. The lawsuit portrays this as anticompetitive behavior aimed at controlling AI agent development on X's infrastructure.

Notably absent are direct cryptocurrency connections, though the case highlights growing tensions between AI innovators and platform operators in Web3-adjacent spaces. The outcome could influence how blockchain projects interact with dominant tech platforms moving forward.