Eliza Labs and Founder Shaw Walters filed a federal antimonopoopoolio demand against the social media platform X on August 27.
According to the lawsuit, the plaintiffs claim that the social media platform fraudulently extracted technical information about their AI agents before deploying them and launching competitors.
The complaint seeks damage greater than $ 75,000 and the immediate restoration of the account.
In a statement of August 28, Walters described the lawsuit as a last resort after months of failed negotiations.
He said:
“X and XAI realize this at some level: they have just submitted a lawsuit claiming that Apple and Openai are doing the same anti -competitive behavior that X is doing to us.”
Walters added that X initially invited collaboration after seeing the widespread adoption of Eliza’s open source AI framework.
After the meetings at the X headquarters in February, the platform demanded Eliza to buy an annual company license of $ 600,000 despite paying more than $ 20,000 annually in rates.
Antitrust claims
An antitrust demand defies the practices that damage fair competition, such as monopolies and anti -competitive behavior, to protect consumers and guarantee open markets.
Eliza’s complaint alleges that X violated Section 2 of Sherman Law by taking advantage of monopoly power in social networks shortly to suppress the competence of AI.
The demand details how X suspended Eliza’s accounts in June 2025, then demanded extensive technical documentation under the pretext of account restitution.
Walters states that X used this information to develop almost identical characteristics, including 3D avatars, voice integration and telephone capabilities, which were launched through XAI products.
He added that X requested detailed explanations of Eliza’s frame architecture, the functionality of the end point and the implementation details when developing competitors.
Remedies include platform restoration
The claim seeks multiple forms of relief, including a declaration sentence that X lacks immunity from section 230 for anti -competitive delators, mandates that avoid future exclusion behavior and the restoration of the account with full access to the platform.
Monetary remedies include the rise of the unfair enrichment of X to copy Eliza’s technology, compensation for fraudulent misrepresentation and unfair damage to competition, as well as triplet damages under the provisions of Sherman’s law.
The plaintiffs also request punitive damage and lawyer fees. The demand occurs days after Xai de Elon Musk demanded Apple and OpenAi on August 25.
Musk’s demand claimed that companies conspired to suppress AI competition through the exclusive Integration of Apple Chatgpt and the favoritism of the application store. The lawsuit states that the Apple with Openai association makes it “impossible for any AI company in addition to OpenAi to reach #1 in the App Store.”
The parallel litigation highlights the legal battles that increase the control of the AI market, with Musk chasing antitrust claims while facing very similar accusations of Eliza Labs.
