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Elon Musk's X company is facing an antitrust lawsuit from Eliza Labs

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2025-08-29 00:29:51
On August 29, software development company Eliza Labs sued Elon Musk's X Corp, alleging that it obtained key technical information from the company before suspending Eliza's account and launching a copycat AI product.
Eliza and his founder and plaintiff, Shaw Walters, allege that X induced them to share technical details about AI agents running on social platforms and forced developers to pay high enterprise licensing fees to continue operating.
The lawsuit alleges that X violated the Antimonopoly Act by abusing its dominant social media position to crush competitors. Eliza stressed that his removal from the platform was not a publishing decision, but an "orchestrated and cunning" act that damaged the company's relationship with Customers and limited the company's growth. Representatives for X and Eliza did not respond to requests for comment in federal court in San Francisco.
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