Eliza Labs has filed a lawsuit against X Corp, accusing the company of stealing its AI technology and engaging in anti-competitive practices. The complaint alleges that X misused its monopoly power to stifle competition and profits from Eliza’s innovations. Eliza Labs claims it was invited to share technical details about its AI tools, only to be banned from the platform shortly after while X launched similar products under the xAI brand. The lawsuit details how X allegedly blocked Eliza's access to investors and users while launching competing AI agents. Though the lawsuit doesn’t specify damages, it seeks restitution for losses incurred, treble damages, and punitive measures. However, legal experts suggest that Eliza’s open-source status may weaken their intellectual property claims, and they may face challenges in proving antitrust violations. The case, filed in the Northern District of California, raises significant questions about competitive practices in the rapidly evolving AI sector, although the likelihood of success remains uncertain.

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