The Ethereum-based gaming platform Xai has filed a lawsuit against Elon Musk's artificial intelligence company xAI, accusing it of trademark infringement and unfair competition.
The lawsuit filed Thursday in the Northern District of California claims that Musk's xAI company has caused widespread market confusion, damaging the Xai brand.
Delaware-based Ex Populus states that since June 2023, it has been using the XAI trademark in U.S. commerce through its blockchain gaming ecosystem and $XAI token. The lawsuit states: 'This is a typical trademark infringement case that requires court intervention.'
Ex Populus operates the Xai ecosystem, which includes a blockchain network designed for video games and digital transactions, providing infrastructure that supports gaming logic, AI decision-making, rewards, and data management.
The complaint states that the confusion stems from Musk's announcement of his company xAI in July 2023 and the plan to launch a game studio announced in November 2024.
The document states: 'The market is rife with confusion, and consumers, the media, and even Musk's AI assistant Grok have incorrectly linked the two.'
Ex Populus points out that in addition to losing goodwill, Xai is also facing 'significant negative consumer sentiment' due to the damaged image from Musk and his xAI products.
The lawsuit also mentions that the U.S. Patent and Trademark Office has suspended several trademark applications for Musk's xAI due to the risk of confusion with Xai's trademark.
Ex Populus seeks to revoke xAI's application, compensation for infringement damages, and to prohibit Musk's company from using related names in the gaming and blockchain fields.
