Source: Reuters

Reuters reports that Elon Musk’s social media platform, X Corp, has resolved a legal dispute with the software developer Eliza Labs concerning the use of artificial intelligence "agents." The lawsuit, which had been pending in a federal court in Texas, accused X of misleading the startup into sharing proprietary expertise about autonomous AI agents under the guise of partnership discussions. Eliza Labs alleged that X subsequently suspended its account and launched its own competing AI products, including the Grok-related features, while attempting to charge the startup exorbitant fees for platform access. The case involved claims of antitrust violations, trademark infringement, and unfair competition, highlighting the growing tensions between platform owners and third-party AI developers.

The settlement was finalized on December 30, 2025, leading to the voluntary dismissal of the claims with prejudice. While the specific financial and operational terms of the agreement remain confidential, the resolution removes a significant legal hurdle for X as it continues to integrate generative AI capabilities into its ecosystem. This case was particularly notable for its focus on whether platform access policies could be used to stifle competition in the emerging AI agent market. Legal analysts suggest that the settlement reflects a desire by both parties to avoid a protracted public trial over sensitive technical and business roadmaps in the rapidly evolving field of social media automation.