The Ethereum-based gaming network XAI has accused Elon Musk-supported AI startup xAI of trademark infringement and unfair competition.
Ex Populus took legal action today to protect the Xai brand. With increased confusion around Elon Musk’s AI company (@xai), it’s a big responsibility to safeguard the brand that the community trusts. You can read more details at https://t.co/ce8Aw9hNCZ
— XAI 🎮⛓️ (@XAI_GAMES) August 22, 2025
According to documents filed in the U.S. District Court for the Northern District of California, the billionaire’s project has created widespread market confusion, damaging the XAI brand.
The parent company of the gaming protocol, Ex Populus, stated that it has used the “XAI” trademark since June 2023, referring to both the protocol and the token.
Musk announced his xAI in July of the same year. The lawsuit includes evidence such as screenshots from social media and websites.
“The defendants’ vast user base and market influence have led to widespread consumer confusion regarding the connection between Musk and his company with the plaintiff and the XAI brand,” the documents state.
The confusion worsened when xAI announced plans to launch a gaming studio in 2024.
As evidence, the plaintiff attached a post from the Binance forum, where a user had to clarify the differences between the projects.
Representatives of Ex Populus claim that the damage extends beyond lost business reputation. XAI has faced “serious negative consumer sentiment” due to Musk’s ambiguous image and scandals surrounding xAI products.
Additionally, the businessman’s legal team allegedly attempted to pressure Ex Populus into relinquishing its rights by threatening to cancel its U.S. registration, according to the lawsuit.
The U.S. Patent and Trademark Office has already suspended several registration applications from xAI.
Ex Populus seeks the complete cancellation of the firm’s pending copyright claims, compensation for infringement, and a court order prohibiting Musk’s company from using the disputed name.
In August, journalists discovered that xAI’s chatbot Grok had published hundreds of thousands of user dialogues on Google and other search engines.