Ex Populus, the company behind Ethereum-based gaming network Xai, has filed a lawsuit against Elon Musk’s artificial intelligence firm xAI.
The case, submitted to the Northern District of California, accuses Musk’s company of trademark infringement and unfair competition. According to the filing, the use of the xAI brand has created market confusion and damaged the reputation of Xai, which has operated under the name since June 2023.
Xai’s Trademark and Ecosystem
Ex Populus explained in the lawsuit that the Xai trademark has been in commercial use for more than a year.
The gaming-focused blockchain network powers transactions, rewards, and AI-driven tools for multiple applications within its ecosystem. Xai also operates the $XAI token, which supports its growing Web3 infrastructure.
The company described the situation as a clear case of trademark violation that needs immediate legal action.
Confusion Linked to Musk’s AI Firm
The complaint highlights that confusion began shortly after Musk announced his own company, xAI, in July 2023.
Matters escalated in late 2024 when Musk revealed that xAI intended to build a gaming studio. Xai claims this overlap led to consumers, media outlets, and even Musk’s AI assistant Grok mistakenly connecting the two companies.
Ex Populus argues that this misidentification has caused reputational harm, worsened by Musk’s polarizing image and controversies tied to his AI ventures.
Legal Pressure and Trademark Issues
The filing also alleges that Musk’s legal team attempted to pressure Ex Populus into giving up rights to the Xai trademark earlier this month by threatening cancellation of its registration.
Furthermore, the US Patent and Trademark Office has suspended several of Musk’s xAI applications due to similarities with the existing Xai mark. Ex Populus is now asking the court to cancel xAI’s pending applications, award damages, and block Musk’s firm from using the disputed name in blockchain or gaming contexts.