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X Hit with Lawsuit Over Alleged AI Theft from Eliza Labs

September 1, 2025
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Eliza Labs, an organization behind ElizaOS, has filed a lawsuit in opposition to X, the social media platform owned by Elon Musk.

The agency claimed that X copied its synthetic intelligence (AI) instruments and lower off its entry after gathering key technical data.

The case, introduced by founder Shaw Walters, stated X reached out beneath the pretense of collaboration, then shut Eliza Labs out and launched comparable merchandise by way of its personal AI division, xAI.

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The lawsuit was submitted to a federal court docket in Northern California. In line with the submitting, X approached Eliza Labs in early 2025 after its open-source software program started gaining consideration in developer communities.

Eliza Labs acknowledged that X initially requested for technical data and organized conferences. Nevertheless, the corporate later demanded a $50,000 month-to-month licensing price if Eliza Labs wished to maintain utilizing the platform.

When Eliza Labs didn’t comply, each its and Walters’ accounts have been suspended. The grievance factors to inside messages from an X govt who flagged rule violations involving APIs, purchasers, and use instances.

Regardless of the ban, Eliza Labs claims that X continued to request technical paperwork.

Nevertheless, Eliza Labs’ accounts remained blocked whereas xAI went on to launch an analogous product known as “Companions” within the Grok chatbot app. The function contains characters like Ani, a gothic-themed avatar, and Rudy, a pink panda mascot.

Eliza Labs argued that X used its management over the platform to limit competitors and achieve an unfair benefit.

Lately, xAI was hit with a lawsuit from the Ethereum


ETH

$4,376.23

-based gaming community Xai. What was the allegation? Learn the complete story.



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Tags: AllegedElizaHitLabsLawsuitTheft
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