Eliza Labs Sues X Over Alleged AI Tech Theft and Anti-Competitive Practices

Eliza Labs has filed a lawsuit against X Corp., accusing Elon Musk's platform of stealing its AI technology and engaging in anti-competitive behavior. The complaint alleges that X invited Eliza Labs to share technical details, only to deplatform the company and launch a competing product, Grok, using the same framework.

Legal experts note that Eliza's open-source status may weaken its intellectual property claims, but allegations of unfair business practices could hold weight. The lawsuit seeks damages, reinstatement on the platform, and a share of profits from the allegedly misused technology.

Eliza Labs developed ElizaOS, an open-source framework for autonomous AI agents operating across blockchain networks. The case, filed in California federal court, highlights growing tensions between tech giants and smaller innovators in the AI space.