Eliza Labs, an AI software company, has sued X Corp, alleging that the social media platform āwielded its incredible monopoly powerā to suspend Elizaās account after extracting valuable knowledge from the AI firm.
In a WednesdayĀ filingĀ with the federal court in San Francisco, Eliza Labs and its founder, Shaw Walters, claimed that Elon Muskās X launched copycat AI products after obtaining key technical information from Eliza and then removing the company from the X platform.
āThis case involves X Corp wielding its incredible monopoly power with perceived immunity from suit to deplatform users with the intent to restrain competition for launching AI Agents on the X Corp platform,ā the filing said.
The plaintiffs argued that X suspended the accounts of both Eliza Labs and Walters without warning or legitimate justification.Ā
āIn the weeks leading to the deplatforming, X began to push plaintiffs to adopt an exorbitantly expensive āEnterprise Licenseā or āEnterprise APIā (for $50,000/month, or $600,000.00/year),ā Eliza said in the filing, adding that it declined to pay for such services.
Eliza suggested that Xās move āconstituted a coordinated, fraudulent, and anticompetitive effortā to obtain money and technical intelligence from the plaintiffs regarding their open-source software development processes.
Eliza Labs is the creator of the $2.5 billion-valuedĀ elizaOS open-source protocolĀ for autonomous AI agents. In April, itĀ launched a no-code AI agent launchpadĀ that enables users to develop advanced AI agents without requiring coding knowledge.
