The Ethereum-centric gaming platform Xai has initiated legal proceedings against Elon Musk’s AI enterprise xAI, alleging trademark violations and unfair competition.
The legal document, submitted in the Northern District of California on Thursday, states that Musk’s xAI organization has generated substantial market confusion, harming Xai’s reputation.
Ex Populus, the Delaware-based entity behind Xai, asserted that it has utilized the XAI trademark in US commerce since June 2023, including via its blockchain gaming platform and the $XAI token. “This represents a quintessential case of trademark infringement necessitating the Court’s intervention for resolution,” the document stated.
Ex Populus manages the Xai ecosystem, which features a blockchain-enabled network tailored for gaming and digital transactions, providing infrastructure to facilitate game mechanics, AI-guided decisions, rewards, and data oversight across various applications, according to the filing.
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xAI gaming studio exacerbates confusion
The legal claim alleges that confusion started after Musk introduced his firm, xAI, in July 2023 and intensified when he announced in November 2024 that xAI intended to establish a gaming studio.
The filing asserts that “confusion in the marketplace was rampant regarding whether Defendants/Musk were linked to, owned, or endorsed Plaintiff’s XAI Trademark or the related products and services.” It referenced instances of consumers, media outlets, and even Musk’s AI assistant Grok mistakenly associating the two entities.
Ex Populus contended that the reputational damage extends beyond the diminishment of goodwill. The document claims Xai has encountered “significant negative consumer perception” as a result of Musk’s divisive public persona and controversies surrounding xAI offerings.
“Plaintiff is not only experiencing irreparable damage from the loss of control over its well-earned goodwill in its XAI Trademark… but also Plaintiff is suffering due to the confusing link with Elon Musk resulting in substantial negative consumer perception,” the filing observes.
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Musk’s team pressured Xai regarding trademark ownership
The filing accuses Musk’s legal representatives of attempting to coerce Ex Populus into surrendering rights by threatening to cancel its registration earlier this month.
The lawsuit also noted that the US Patent and Trademark Office has already suspended several of Musk’s xAI trademark applications due to a potential for confusion with Xai’s established mark.
Ex Populus seeks the cancellation of xAI’s pending applications, compensation for infringement, and a judicial order to prevent Musk’s business from employing the disputed name in gaming and blockchain scenarios. “There is no legal remedy for the sheer extent of harm Defendants have inflicted,” the company informed the court.
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