Ethereum-based Gaming Network Xai Files Lawsuit Against Elon Musk’s xAI
The Ethereum-based gaming network Xai has initiated legal action against Elon Musk’s artificial intelligence firm xAI, alleging trademark infringement and unfair competition.
The lawsuit, filed in the Northern District of California on Thursday, asserts that Musk’s xAI company has caused widespread confusion in the market, adversely affecting Xai’s brand.
Ex Populus, the Delaware corporation that manages Xai, claims to have been using the XAI trademark in the US since June 2023. This includes its blockchain gaming ecosystem and the $XAI token. The filing states, “This is a classic case of trademark infringement that requires the Court’s intervention to remedy.”
The Xai ecosystem, operated by Ex Populus, features a blockchain-based network tailored for video gaming and digital transactions. It provides the necessary infrastructure for game logic, AI-driven decisions, rewards, and data management across various applications, as detailed in the complaint.
According to the lawsuit, confusion began shortly after Musk unveiled his company, xAI, in July 2023, and escalated when he announced plans for a gaming studio in November 2024.
The filing adds that “marketplace confusion abounded as to whether Defendants/Musk were associated with, owned, or sponsored Plaintiff’s XAI Trademark or the associated goods and services.” It provides instances of consumers, media outlets, and even Musk’s AI assistant Grok mistakenly connecting the two entities.
Ex Populus contends that the damage to its reputation extends beyond mere loss of goodwill. The lawsuit claims that Xai has experienced “significant negative consumer sentiment” due to Musk’s controversial public persona and issues surrounding xAI products.
“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,” the filing emphasizes.
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The lawsuit further alleges that Musk’s legal team has attempted to coerce Ex Populus into surrendering its rights by threatening to cancel its trademark registration earlier this month.
Additionally, the lawsuit notes that the US Patent and Trademark Office has already suspended multiple trademark applications submitted by Musk’s xAI due to the potential for confusion with Xai’s existing mark.
Ex Populus is seeking the cancellation of xAI’s pending applications, damages for infringement, and a court order to stop Musk’s company from using the disputed name within gaming and blockchain environments. “There is no remedy at law for the sheer magnitude of harm Defendants have caused,” the company stated in court.
