Quick Highlights
- Eliza Labs claims X Corp copied AI products and blocked its accounts.
- Startup refused X Corp’s $50K/month enterprise license demand.
- Lawsuit joins a growing wave of legal disputes around Musk ventures.
Eliza Labs Takes X Corp to Court Over AI Allegations
Eliza Labs, a startup known for its open-source AI platform elizaOS, and its founder Shaw Walters have filed a lawsuit against Elon Musk’s X Corp in federal court in San Francisco. The startup alleges that X Corp abused monopoly power to block accounts and stifle competition while copying AI products developed by Eliza Labs.
The lawsuit claims that X Corp obtained technical information from Eliza Labs, then launched its own AI products before deleting the accounts of both the company and its founder.

Legal Battles in Musk’s Empire
Eliza Labs’ case adds to a growing wave of lawsuits targeting Musk’s businesses. Notably, Ex Populus, a distributor of Xai blockchain games, has sued Musk’s xAI over trademark infringement, highlighting ongoing disputes across his ventures.
The outcome of Eliza Labs’ lawsuit could have far-reaching consequences for AI startups, platform competition, and regulatory scrutiny of tech monopolies.