Ethereum gaming network Xai has filed a lawsuit against Elon Musk’s xAI, accusing the artificial intelligence company of trademark infringement and unfair competition.
The complaint was submitted to the U.S. District Court for the Northern District of California on Thursday. It states that Musk’s xAI has created market confusion that harmed the Xai brand.
Ex Populus, the Delaware-based corporation behind Xai, said it has used the XAI trademark in U.S. commerce since June 2023. The filing reads,
“This is a classic case of trademark infringement that requires the Court’s intervention to remedy.”
The complaint explains that Ex Populus operates the Xai ecosystem, a blockchain-powered network designed for gaming and digital transactions. It supports game logic, AI-driven decisions, rewards, and data management across applications.
xAI Gaming Studio Announcement Caused Confusion
The lawsuit claims that confusion began when Elon Musk announced xAI in July 2023. It intensified in November 2024, when Musk revealed that xAI planned to launch a gaming studio.
According to the complaint, “marketplace confusion abounded as to whether Defendants/Musk were associated with, owned, or sponsored Plaintiff’s XAI Trademark or the associated goods and services.”
Ex Populus listed examples of confusion. It said consumers, publications, and Musk’s AI assistant Grok mistakenly linked Xai and xAI.
The complaint also noted reputational damage. Ex Populus said Xai faced “significant negative consumer sentiment” because of Musk’s public controversies and issues linked to xAI products.
The filing added, “Plaintiff is not only being irreparably harmed by the loss of control over its hard-earned goodwill in its XAI Trademark… but also Plaintiff is damaged because the confusing association with Elon Musk is resulting in significant negative consumer sentiment.”
Musk’s Legal Team Challenged Xai Trademark
The complaint further alleges that Musk’s legal team tried to pressure Ex Populus into surrendering rights to the trademark. Earlier this month, Musk’s lawyers threatened cancellation of Xai’s registration.
The lawsuit points out that the U.S. Patent and Trademark Office (USPTO) has already suspended several of Musk’s xAI trademark applications. The suspension cited a likelihood of confusion with Xai’s existing mark.
Ex Populus is asking the court to cancel Musk’s pending xAI applications, order damages for infringement, and block Musk’s company from using the xAI name in gaming and blockchain contexts.
The filing concluded,
“There is no remedy at law for the sheer magnitude of harm Defendants have caused.”
