1 month ago
Eliza Labs and laminitis Shaw Walters filed a national antitrust suit against societal media level X connected Aug. 27.
According to the lawsuit, the plaintiffs are alleging that the societal media level fraudulently extracted method accusation astir their AI agents earlier deplatforming them and launching competing products.
The ailment seeks damages exceeding $75,000 and contiguous restoration of the account.
In an Aug. 28 statement, Walters described the suit arsenic a past edifice aft months of failed negotiations.
He said:
“X and xAI recognize this connected immoderate level – they conscionable filed a suit alleging that Apple and OpenAI are doing the aforesaid anticompetitive behaviour to them that X is doing to us.”
Walters added that X initially invited collaboration aft seeing wide adoption of Eliza’s open-source AI cause framework.
Following meetings astatine X office successful February, the level demanded Eliza acquisition a $600,000 yearly endeavor licence contempt already paying implicit $20,000 annually successful fees.
Antitrust claims
An antitrust suit challenges practices that harm just competition, specified arsenic monopolies and anticompetitive behavior, to support consumers and guarantee unfastened markets.
Eliza’s ailment alleges X violated Section 2 of the Sherman Act by leveraging monopoly powerfulness successful short-form societal media to suppress AI competition.
The suit details however X suspended Eliza’s accounts successful June 2025, past demanded extended method documentation nether the pretense of relationship reinstatement.
Walters claims that X utilized this accusation to make astir identical AI features, including 3D avatars, dependable integration, and telephone capabilities, which were launched done xAI’s products.
He added that X requested elaborate explanations of Eliza’s model architecture, endpoint functionality, and implementation specifics portion processing competing products.
Remedies see level restoration
The suit seeks aggregate forms of relief, including a declaratory judgement that X lacks Section 230 immunity for anticompetitive deplatforming, injunctions preventing aboriginal exclusionary conduct, and relationship restoration with afloat level access.
Monetary remedies see disgorgement of X’s unjust enrichment from copying Eliza’s technology, compensation for fraudulent misrepresentation, and unfair contention damages, arsenic good arsenic treble damages nether the Sherman Act provisions.
The plaintiffs besides petition punitive damages and attorneys’ fees. The suit comes days after Elon Musk’s xAI sued Apple and OpenAI connected Aug. 25.
Musk’s suit alleged that the companies conspired to suppress AI contention done Apple’s exclusive ChatGPT integration and App Store favoritism. The suit claims Apple’s concern with OpenAI makes it “impossible for immoderate AI institution too OpenAI to scope #1 successful the App Store.”
The parallel litigation highlights escalating ineligible battles implicit AI marketplace control, with Musk pursuing antitrust claims portion facing precise akin allegations from Eliza Labs.
The station Eliza Labs files antitrust suit against X, alleging AI cause monopolization appeared archetypal connected CryptoSlate.
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