Musk's X resolves Eliza Labs lawsuit over AI agents
By Mike Scarcella
Dec 30 (Reuters) - Artificial intelligence software developer Eliza Labs has ended its lawsuit accusing billionaire Elon Musk’s X Corp of extracting valuable information from the company before launching copycat AI products.
A federal judge in Texas dismissed the case on Monday, after Eliza Labs and X said in a filing last week that they agreed to dismissal with prejudice, meaning the case cannot be refiled.
A lawyer for X on Tuesday said Eliza had purchased an enterprise license from X, and that neither X nor its AI affiliate xAI paid anything to resolve the case. X had denied wrongdoing.
Eliza Labs in a statement said it had resolved the lawsuit but declined to provide details.
The lawsuit, filed in August, claimed X duped Eliza into sharing its tech expertise related to AI "agents" that operate on social media platforms.
Eliza developed an open-source platform for AI agents, which can take actions on their own and adapt, unlike traditional software. It accused X of trying to prevent it from operating on Musk's social media platform, violating antitrust law.
The lawsuit said X reached out to Eliza last year to discuss AI agents operating on X’s platform. Eliza and its founder said they shared details about the company’s development roadmap and vision for AI agents.
X allegedly told Eliza it would have to pay $50,000 a month for an enterprise license to continue operating on the platform. The lawsuit said X was coercing developers into paying “exorbitant” prices to avoid being kicked off the site.
The case is Eliza Labs Inc et al v. X Corporation, U.S. District Court for the Northern District of Texas, No. 4:25-cv-01208-P.
For plaintiffs: Warren Burns of Burns Charest and Matthew Miller of Hanson Bridgett
For defendant: Joel Kurtzberg of Cahill Gordon & Reindel, and Noah Schottenstein of Stone Hilton
Read more:
Apple and OpenAI must face X Corp's lawsuit for now, US judge rules
AI users sue Microsoft in antitrust class action over OpenAI deal
Musk’s X hit with antitrust lawsuit by software startup Eliza Labs
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