#ETHBreaksATH The Ethereum Xai gaming network sues Musk's xAI for trademark infringement

The Ethereum Xai gaming network claims that Elon Musk's AI firm, xAI, has caused market confusion and reputational damage.



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The Ethereum-based gaming network 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, alleges that Musk's xAI has created widespread confusion in the market, damaging Xai's brand.

Ex Populus, the Delaware corporation behind Xai, claimed to have used the XAI trademark in U.S. commerce since June 2023, including through its blockchain gaming ecosystem and the $XAI token. “This is a classic case of trademark infringement that requires Court intervention to remedy,” the filing stated.

Ex Populus operates the Xai ecosystem, which includes a blockchain-powered network designed for video games and digital transactions, providing infrastructure to support game logic, AI-driven decisions, rewards, and data management across multiple applications, according to the filing.

Xai sues Musk's xAI. Source: XAI

The xAI gaming studio triggers more confusion

The lawsuit alleges that confusion began after Musk announced his company, xAI, in July 2023 and intensified when he stated in November 2024 that xAI planned to launch a gaming studio.

The filing asserts that “market confusion abounded regarding whether the Defendants/Musk were associated with, owned, or sponsored the Plaintiff's XAI brand or the associated goods and services.” It cited examples of consumers, publications, and even Musk's AI assistant, Grok, incorrectly linking both companies.