Eliza Labs, an AI software startup led by founder Shaw Walters, has filed an antitrust lawsuit against Elon Musk's X Corp (formerly Twitter) in federal court in San Francisco. The lawsuit alleges that X Corp engaged in anticompetitive practices and theft of proprietary AI technology.
The legal complaint claims that during partnership discussions in 2024, Walters shared technical data with X Corp, which the company subsequently used to replicate Eliza's no-code AI tools. According to the filing, X Corp pressured Eliza Labs to adopt an "Enterprise License" costing $50,000 per month ($600,000 annually). When Eliza declined, both the company's account and Walters' personal account were abruptly suspended without warning.
Shaw Walters stated: "X Corp's conduct represents a disturbing trend of tech giants abusing their power to stifle competition and steal innovations from smaller players." The lawsuit further accuses X Corp of orchestrating a "coordinated, fraudulent, and anticompetitive effort" to gain access to Eliza's development methods for its own offerings.
Eliza Labs is known for elizaOS, an open-source protocol for autonomous AI agents reportedly valued at $2.5 billion. The company launched a no-code AI launchpad in April 2024 aimed at democratizing agent development for non-programmers.
X Corp has not publicly responded to the allegations. The lawsuit comes amid other legal challenges involving Musk's companies, including a recent trademark infringement lawsuit filed by Ethereum gaming platform XAI against Musk's artificial intelligence company xAI.