Eliza Labs and founder Shaw Walters filed a federal antitrust lawsuit against social media platform X on Aug. 27.
According to the lawsuit, the plaintiffs are alleging that the social media platform fraudulently extracted technical information about their AI agents before deplatforming them and launching competing products.
The complaint seeks damages exceeding $75,000 and immediate restoration of the account.
In an Aug. 28 statement, Walters described the lawsuit as a last resort after months of failed negotiations.
He said:
“X and xAI realize this on some level – they just filed a lawsuit alleging that Apple and OpenAI are doing the same anticompetitive conduct to them that X is doing to us.”
Walters added that X initially invited collaboration after seeing widespread adoption of Eliza’s open-source AI agent framework.
Following meetings at X headquarters in February, the platform demanded Eliza purchase a $600,000 annual enterprise license despite already paying over $20,000 annually in fees.
Antitrust claims
An antitrust lawsuit challenges practices that harm fair competition, such as monopolies and anticompetitive behavior, to protect consumers and ensure open markets.
Eliza’s complaint alleges X violated Section 2 of the Sherman Act by leveraging monopoly power in short-form social media to suppress AI competition.
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Author: Gino Matos
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