Ethereum Gaming Network Xai Sues Elon Musk’s AI Company Over Trademark Rights

TLDR

• Ethereum gaming network Xai sued Elon Musk’s xAI company for trademark infringement in California federal court
• Ex Populus claims they’ve used the XAI trademark since June 2023, before Musk’s xAI announcement in July 2023
• Confusion increased when Musk announced xAI would launch a gaming studio in November 2024
• US Patent Office suspended several of Musk’s xAI trademark applications due to confusion with existing Xai mark
• Ex Populus seeks court order to stop xAI from using disputed name in gaming and blockchain contexts

Ex Populus, the Delaware corporation behind Ethereum gaming network Xai, filed a federal lawsuit against Elon Musk’s artificial intelligence company xAI on Thursday. The case centers on trademark infringement claims filed in the Northern District of California.

The gaming company argues it has used the XAI trademark in US commerce since June 2023. This includes their blockchain gaming ecosystem and the $XAI token, which preceded Musk’s xAI announcement by one month.

Ex Populus operates a blockchain-powered network designed for video gaming and digital transactions. The platform offers infrastructure to support game logic, AI-driven decisions, rewards and data management across multiple applications.

Musk announced his xAI company in July 2023, one month after Ex Populus began using their trademark. The confusion deepened in November 2024 when Musk stated that xAI planned to launch a gaming studio.

The gaming company’s complaint cites widespread marketplace confusion between the two ventures. Publications, consumers and even Musk’s AI assistant Grok have incorrectly linked the two companies.

Gaming Territory Overlap Creates Market Confusion

Musk’s November announcement about starting an “AI game studio to make games great again” directly entered Ex Populus’s established territory. The post reached over 36 million viewers on social media platforms.

Ex Populus claims the confusion extends beyond lost goodwill to active reputational harm. The company states it faces negative consumer sentiment due to Musk’s polarizing public image and controversies involving xAI products.

The filing mentions incidents where xAI’s Grok chatbot promoted violence and made racist comments. These controversies create negative brand associations for the gaming ecosystem, according to the lawsuit.

News algorithms and social media posts have consistently mixed up the two companies. This has caused Ex Populus to lose control over its brand reputation in the marketplace.

The US Patent and Trademark Office has already taken action in this dispute. The office suspended several of Musk’s xAI trademark applications due to likelihood of confusion with Ex Populus’s existing mark.

Legal Pressure and Trademark Disputes

Musk’s legal team attempted to pressure Ex Populus into giving up trademark rights through threatened cancellation proceedings. On August 7, 2025, xAI’s counsel warned they would petition to cancel Ex Populus’s federal registration.

The defendants tried to acquire senior trademark status by purchasing an abandoned “X.AI” registration. However, Ex Populus argues the previous owner had already abandoned the mark in October 2021.

Ex Populus seeks cancellation of xAI’s pending applications and damages for infringement. The company wants a court order preventing Musk’s firm from using the disputed name in gaming and blockchain contexts.

The lawsuit demands monetary relief including disgorgement of profits and actual damages. Ex Populus also seeks treble monetary relief under federal law and punitive damages under state law.

The XAI token has declined 96.7% from its all-time high of $1.60 reached on March 11, 2024. The gaming network’s token has struggled with reduced interest in blockchain gaming platforms and broader crypto market weakness.

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