Eliza Labs Takes Legal Action Against X Corp Over Account Suspension
Eliza Labs, the AI powerhouse, isn’t backing down from its lawsuit against X Corp. The AI software company claims that X “wielded its incredible monopoly power” to suspend Eliza’s account after siphoning off valuable insights from the firm’s technical know-how.
X Corp’s Alleged Monopoly Power and Copycat AI Products
In a bold Wednesday filing with the federal court in San Francisco, Eliza Labs and its founder, Shaw Walters, allege that X launched knockoff AI products after gaining critical information from the company. They accuse X of using its power to deplatform Eliza and restrict competition for launching AI agents on its platform.
“This case involves X Corp wielding its incredible monopoly power with perceived immunity from suit to deplatform users with the intent to restrain competition,” the filing states.
Suspension Without Warning or Justification
Eliza’s lawsuit contends that X suspended the accounts of both the company and Walters without any warning or valid reason. According to Eliza, X tried to strong-arm them into paying for an eye-watering “Enterprise License” or “Enterprise API” for a whopping $50,000 per month, or $600,000 annually. Unsurprisingly, Eliza refused, which they believe led to the suspension.
Fraudulent and Anticompetitive Claims Against X Corp
The filing claims X’s actions were a “coordinated, fraudulent, and anticompetitive effort” to extract both cash and technical intelligence regarding Eliza’s open-source software development process.
Eliza Labs’ Rise to $2.5 Billion Valuation
Eliza Labs is best known for creating the $2.5 billion-valued elizaOS, a protocol for autonomous AI agents. Earlier this year, it launched a no-code AI agent platform that allows users to create advanced AI agents without the need for programming skills.
Matvii Diadkov
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