Ethereum Gaming Network Xai Sues Elon Musk’s xAI Over Trademark Clash

Ethereum-based gaming network Xai has filed a lawsuit against Elon Musk’s AI company xAI, claiming the name has caused significant market confusion and damaged its brand.

Key Takeaways

• Xai, a blockchain gaming protocol, filed a lawsuit in California federal court against Elon Musk’s AI venture xAI for trademark infringement and unfair competition.
• Ex Populus, the company behind Xai, claims to have used the “XAI” trademark since June 2023, before Musk announced xAI in July 2023.
• Public confusion worsened after xAI entered the gaming sector, with users and media outlets mistakenly linking the two companies.
• Ex Populus seeks damages and a legal order to block Musk’s company from using the name “xAI” in gaming or blockchain.

What Happened?

Ex Populus, the company operating Ethereum-based gaming network Xai, has sued Elon Musk’s xAI, accusing it of creating confusion in the marketplace. The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that Musk’s company is infringing on Xai’s existing trademark and damaging its reputation, particularly as both firms now have interests in gaming.

Trademark Dispute Between Xai and xAI

Xai has been using its name and branding since June 2023, which includes its gaming ecosystem and its token $XAI. Elon Musk publicly announced his AI company xAI a month later in July 2023. According to the complaint, this overlap caused initial confusion that intensified when Musk revealed plans for xAI to launch a gaming studio in November 2024.

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

• Ex Populus shared examples where users on platforms like Binance and publications incorrectly assumed that Musk’s firm and Xai were the same or affiliated.
• Media outlets reportedly used Xai’s logo when covering xAI developments.
• The chatbot Grok, developed by xAI, further confused users by mistakenly saying Xai was part of Musk’s company.

Reputational and Market Impact on Xai

The Ethereum-based platform argues that the association with Elon Musk’s controversial public image and xAI’s product mishaps has caused significant reputational harm. The filing referenced instances of Grok generating offensive content, including antisemitic and violent messages, which some users mistakenly attributed to Xai.

Ex Populus emphasized that this negative sentiment has led to a loss of goodwill and undermined years of brand-building. “Losing control over its goodwill is irreparable harm,” the lawsuit states, stressing that the confusion has real financial and reputational consequences.

Legal Threats and Trademark Office Rulings

The complaint also alleges that Musk’s legal team attempted to pressure Ex Populus into giving up its trademark rights by threatening to cancel their registration. The U.S. Patent and Trademark Office has since suspended multiple trademark applications filed by Musk’s xAI, citing possible conflicts with Xai’s existing mark.

Ex Populus is now asking the court to:

• Permanently bar Musk’s company from using the xAI name in gaming and blockchain contexts
• Cancel pending xAI trademark applications
• Award financial compensation for the alleged damage caused by the infringement

CoinLaw’s Takeaway

I think this lawsuit reflects a growing reality in the tech world. As startups and tech giants race into emerging sectors like AI and blockchain, name collisions are bound to happen, but the damage for smaller players can be enormous. In my experience, once a big name like Musk gets involved, even unrelated companies can get buried under the weight of public confusion. Xai is fighting not just for its brand, but for its right to exist independently in a noisy space dominated by billion-dollar players. And that’s a battle worth watching.