Ethereum-based gaming platform Xai has taken legal action against Elon Musk’s AI startup xAI, accusing it of trademark infringement and brand damage.
Ex Populus, the studio operating the blockchain-powered gaming platform Xai, has filed a lawsuit against Elon Musk’s AI venture xAI. The complaint, submitted to the U.S. District Court for the Northern District of California, alleges that Musk’s company is infringing on Xai’s established trademark and causing significant market confusion.
The lawsuit points out that Xai has been using its name and token XAI since June 2023, while Musk introduced his company just a month later in July 2023. According to Ex Populus, this timeline makes it clear that the brand existed before xAI and should be protected.
How Confusion Spread Across the Market
Ex Populus says that confusion between the two brands escalated as Musk expanded his company’s presence. The tension grew further when xAI announced plans in November 2024 to launch a gaming studio, a move that put both companies in overlapping sectors.
The lawsuit provides examples of mix-ups. Some users on Binance and other crypto platforms mistakenly assumed that Musk’s company and Xai were the same. Several media outlets even used Xai’s official logo while reporting on xAI news.
The issue was not limited to logos or headlines. Grok, the AI chatbot developed by Musk’s company, allegedly told users that Xai was part of xAI. Ex Populus argues that such mistakes strengthened the public belief that both entities were connected.
Reputational Harm Linked to Musk’s Public Image
Beyond confusion, Ex Populus claims that association with Musk’s firm has damaged its reputation. The lawsuit refers to offensive content generated by Grok, including antisemitic and violent statements, which some users wrongly attributed to Xai.
The company stated that this unwanted connection has undermined its credibility within the gaming community. It argues that years of effort spent building trust with users and partners have been eroded, causing “irreparable harm” to its brand value.
Trademark Battles and Legal Pressure
The lawsuit further alleges that Musk’s legal team attempted to pressure Ex Populus into abandoning its rights. Lawyers for Musk’s company allegedly threatened to challenge or cancel Xai’s trademark registration.
So far, the U.S. Patent and Trademark Office (USPTO) has taken a cautious stance. Multiple trademark applications filed by Musk’s xAI have been suspended because of potential conflict with Xai’s earlier registration. This gives weight to Ex Populus’ claim that its rights were established first.
What Ex Populus Demands in Court
Through this lawsuit, Ex Populus is petitioning the court to impose strict measures. It wants Musk’s company barred from using the xAI name in gaming and blockchain contexts. It also seeks the cancellation of pending trademark applications filed by Musk’s team.
Finally, Ex Populus is requesting financial compensation for the reputational and economic damage it claims to have suffered. The company argues that unless these steps are taken, confusion will persist and continue to harm its business, especially as Musk expands further into gaming.
Market Performance Amid Legal Fight
Alongside the lawsuit, Xai’s token has also faced financial setbacks. The cryptocurrency XAI is currently trading nearly 97% below its all-time high of $1.60, which it reached on March 11, 2024. This steep decline highlights the challenges the company is encountering as it attempts to protect its brand identity.
As of press time, the token is trading at $0.04953, marking a 3.85% decline over the last 24 hours.
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Source: https://thecryptobasic.com/2025/08/25/ethereum-gaming-platform-xai-takes-elon-musks-xai-to-court-in-trademark-battle/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-gaming-platform-xai-takes-elon-musks-xai-to-court-in-trademark-battle