Ethereum-based gaming network Xai has filed a lawsuit against Elon Musk’s artificial intelligence company xAI, accusing it of trademark infringement and unfair competition. The case was submitted in the Northern District of California, with Xai’s parent company, Ex Populus, claiming Musk’s firm has caused serious confusion in the market.
Ex Populus, a Delaware-based company, says it has been using the XAI trademark in the United States since June 2023. The firm runs a blockchain gaming network and its own token, $XAI.
The network helps run online games, process payments, reward players, and manage data across apps. The lawsuit describes the situation as a straightforward case of trademark violation that needs court intervention.
Confusion grew after Musk entered gaming
The dispute began when Musk launched his xAI company in July 2023. The confusion grew in November 2024 after Musk said his company would start a gaming studio called xAI. According to the filing, this led consumers, media outlets, and even Musk’s chatbot Grok to mistakenly connect his company with the Xai gaming network.
Ex Populus argues that the damage goes beyond brand confusion. The company says being linked to Musk has brought negative public sentiment because of the controversies tied to his projects. It claims this unwanted association is undermining the goodwill and reputation it has worked to build.
The filing also accuses Musk’s legal team of trying to pressure Ex Populus earlier this month into giving up its trademark rights by threatening to challenge its registration. It further notes that the US Patent and Trademark Office has already suspended several of Musk’s xAI trademark applications due to their similarity to Xai’s mark.
Ex Populus is asking the court to cancel Musk’s pending applications, block his company from using the name in gaming and blockchain, and award damages. The company says the harm caused is so severe that no simple legal remedy can fix it.
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