A legal battle is brewing as xAI, the artificial intelligence venture helmed by Elon Musk, finds itself facing a lawsuit. The plaintiff? Xai, a gaming network built on the Ethereum
The court documents, officially submitted in California’s Northern District, center around accusations of trademark violation and unfair market practices.
Xai’s operations are managed by Ex Populus, a company established in Delaware. They assert that the “XAI” brand has been actively used in American commerce since June of the previous year (2023). This brand is associated with their blockchain gaming ecosystem, the XAI digital token, and a suite of tools facilitating game development, digital asset distribution, AI integration, and transaction management.
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The lawsuit alleges that consumer confusion began when Musk’s xAI was introduced in July of 2023. The situation reportedly intensified in November 2024 when Musk announced xAI’s plans to establish a gaming division.
Xai contends that the public has erroneously connected the two entities, citing instances involving customers, news coverage, and even xAI’s own Grok chatbot interlinking the two.
Ex Populus further argues that its brand image has suffered due to the controversies surrounding Musk and critical opinions directed toward xAI products, leading to negative perceptions impacting the Xai brand.
The filing also claims that legal representatives for Musk attempted to intimidate Ex Populus by threatening to challenge their trademark registration. Interestingly, the United States Patent and Trademark Office (USPTO) has already put several of xAI’s trademark applications on hold.
Xai’s legal demands include preventing Musk’s company from utilizing the debated brand name in contexts related to gaming or blockchain, withdrawing xAI’s pending trademark applications, and awarding monetary damages to Xai.
In related news, Musk recently indicated xAI’s intention to pursue legal action against Apple. Want to know why? Discover the complete story here.