The Ethereum gaming network Xai has filed a lawsuit against Elon Musk's artificial intelligence company, xAI, alleging trademark infringement and unfair competition. The complaint was lodged in the Northern District of California on Thursday. Ex Populus, the Delaware corporation behind Xai, claims it has been using the XAI trademark in U.S. commerce since June 2023, through its blockchain gaming ecosystem and the $XAI token. The lawsuit seeks to prevent xAI from using the "Xai" name and branding in gaming and blockchain contexts to avoid potential confusion.
Ex Populus argues that confusion began after Musk announced his company, xAI, in July 2023 and intensified when he declared in November 2024 that xAI planned to launch a gaming studio. The filing states 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". They cite instances where consumers, publications, and even Musk's AI assistant Grok incorrectly linked the two ventures. News sites and commentators allegedly used the Xai logo in posts about xAI, and many users assumed the two efforts were related. Grok, xAI's chatbot, also reportedly claimed on X that both the Xai blockchain and the xAI gaming push were controlled by Musk's companies.
Xai is a layer-3 network that sits atop Arbitrum, an Ethereum layer-2 system, and is tuned specifically for games. Ex Populus emphasizes its long-standing use of the Xai brand and argues that it must defend its trademark to maintain its identity and reputation in the gaming community. The company says it has used the name publicly since at least June 2023 and the network is used by potentially millions worldwide.
Ex Populus is requesting the court to prohibit xAI from using any similar terms or symbols and is seeking financial compensation for damages caused by the alleged trademark infringement. The company seeks to bar xAI from using any terms or marks likely to be mistaken for the Xai trademark in gaming and blockchain. Ex Populus also seeks punitive damages and to recover all profits that Musk's companies earned from the alleged misuse.
Ex Populus also argues that the reputational harm extends beyond lost goodwill. The complaint states Xai has faced "significant negative consumer sentiment" because of Musk's polarizing public image and controversies involving xAI products. They claim controversies like Grok's past offensive remarks have inflicted immense harm on their brand. Ex Populus' attorneys argued that Musk's company tried to "bully" them into relinquishing its rights to its registered trademark. According to the lawsuit, X.AI's threat to cancel Ex Populus' trademark registration unless it acquiesced constituted an effort to "intimidate" by "companies owned by one of the wealthiest, most highly visible, and most polarizing individuals in the world".
Ex Populus says it could not ignore the overlap because trademark law requires owners to defend their marks or risk losing them. The company states that this case speaks to the right of smaller innovators to build without having their brand diluted or misrepresented.
