Eliza Labs, the AI software firm behind the elizaOS protocol, has filed a lawsuit against Elon Musk’s social media platform X Corp, accusing it of anticompetitive behavior and unfairly suspending its accounts.
In a complaint submitted Wednesday to a federal court in San Francisco, Eliza Labs and its founder, Shaw Walters, alleged that X exploited its access to the company’s technology before suspending both the company’s and Walters’ accounts without notice. The filing claims X used this knowledge to launch competing AI products, while pressuring Eliza to purchase costly enterprise services.
According to the lawsuit, X encouraged the company to adopt an “Enterprise License” or “Enterprise API” subscription priced at $50,000 per month—amounting to $600,000 annually. Eliza Labs said it declined the offer, describing the proposal as “exorbitantly expensive” and suggesting the suspension was part of a “coordinated, fraudulent, and anticompetitive effort” to extract both financial and technical resources.
The filing argues that X’s actions were aimed at restraining competition, particularly in the field of AI agents launched on its platform.
“This case involves X Corp wielding its incredible monopoly power with perceived immunity from suit,” the document stated.
Eliza Labs is best known for its open-source elizaOS protocol, a technology for autonomous AI agents currently valued at $2.5 billion. In April, the company launched a no-code platform designed to let users build advanced AI agents without programming skills—a move that has positioned it as a notable player in the rapidly expanding AI ecosystem.
Both X and Eliza Labs have been contacted for comment, though neither has yet publicly responded to the allegations.
