Elon Musk-Run X Faces Antitrust Lawsuit by Software Startup Eliza Labs

Elon Musk-run X has reportedly been hit with an antitrust lawsuit filed by software startup Eliza Labs. As per a report of Reuters, the lawsuit claims that X Corp extracted valuable information from Eliza Labs before suspending its account on the platform and then launching similar AI-based products. The case has been filed in San Francisco, where Eliza Labs alleges that X misused its access to the company’s technology related to AI agents operating on social media platforms. The lawsuit reportedly states that X violated antitrust laws by using its position to suppress competition. As per reports, Eliza Labs accuses X of acting unfairly to remove a potential rival and gain a competitive advantage in the AI products. Elon Musk’s xAI Sues Former Engineer for Allegedly Sharing Grok Secrets With OpenAI.

Elon Musk X Hit With an Antitrust Lawsuit by Eliza Labs

NEWS: X has been hit with an antitrust lawsuit by AI open-source software startup Eliza Labs.

The company claims X invited Eliza Labs in and cooperated with them closely on integrating AI agents into the X platform - and then without warning banned the accounts of the company… pic.twitter.com/Spl5ZWPIEV

— X Daily News (@xDaily) August 31, 2025

(The above story first appeared on LatestLY on Aug 31, 2025 11:17 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).