Ethereum gaming network XAI sues Elon Musk’s AI company

Ethereum gaming firm Ex Populus is taking legal action against Elon Musk’s artificial intelligence company, xAI. The name similarity has allegedly caused widespread market confusion.

The Ethereum (ETH)-based gaming network has filed a lawsuit against Elon Musk’s artificial intelligence company xAI, accusing it of trademark infringement. The Ether gaming firm behind the network, Ex Populus, announced the lawsuit via its X platform and on its community forum.

“With increased confusion around Elon Musk’s AI company, it’s a big responsibility to safeguard the brand that the community trusts,” said the official account.

Launched in 2021, Ex Populus is a game production and publishing company that focuses on blockchain-based gaming, specifically in the Ethereum ecosystem.

In 2023, the company developed a platform called Xai that enables video game developers to make use of AI-driven gaming solutions and autonomous software systems across multiple platforms. As of late, this platform has been mistaken for Elon Musk’s own artificial intelligence company, which he dubbed xAI.

XAI’s claim over Elon Musk’s trademark infringement

According to the document, Ex Populus filed the lawsuit on the grounds of trademark infringement, unfair competition and false designation of origin as well as unfair business practices. It claims to have registered the trademark since June 2023, which protects it under common law rights.

Despite the trademark, Elon Musk has continued to publicly use the name to refer to his artificial intelligence company linked to the X social media platform. On July 2023, Elon Musk announced he would create a new artificial intelligence and technology company that he named “xAI.”

As a result, many traders began mistaking Ex Populus’ network for Musk’s AI gaming venture. As the post had already reached more than 36 million viewers, it amplified consumer confusion between the two brands. Not to mention, X’s own AI assistant Grok mistakenly told users that the social media account for the Ex Populus network was linked to Musk’s AI company.

“Consumers familiar with Plaintiff’s XAI brand and its established reputation in the video gaming industry instantly began inaccurately conflating Plaintiff with Musk’s/Defendants’ “xAI” company,” wrote the company in the lawsuit filing.

XAI price analysis

After news of the lawsuit against Musk went viral, the native token experienced a drop in value. On August 25, the token dropped 5.16% from its previous daily peak. It is currently trading at $0.0499.

The sharp rejection and highlighted drop zone indicate that bears remain in control for the short term. If this level fails to hold, the next significant support could be around the $0.047–$0.048 range as it continues to dive even lower.

The Relative Strength Index currently sits at 36.89, which is close to the oversold zone. This indicates that bearish momentum is strong but could be nearing exhaustion. The RSI has been trending below its moving average, reflecting sustained weakness. However, with RSI nearing oversold territory, a short-term relief bounce is possible if buyers step in.