TLDR
- Xai claims Musk’s xAI name created “substantial market confusion” in 2023.
- Grok chatbot wrongly linked Ethereum-based Xai to Musk’s AI startup.
- USPTO suspended Musk’s xAI trademark filings over similarity with XAI.
- Ex Populus seeks damages and court ban on xAI branding in gaming.
Xai, an Ethereum-based gaming blockchain network, has filed a lawsuit against Elon Musk’s artificial intelligence company xAI. The filing, made in the Northern District of California, accuses Musk’s firm of trademark infringement and unfair competition.
Trademark Dispute Between Xai and xAI
The complaint was lodged by Ex Populus, the company behind Xai. It stated that the “XAI” trademark has been used in U.S. commerce since June 2023. According to the lawsuit, Musk’s xAI created confusion shortly after its launch in July 2023.
Ex Populus said confusion grew stronger in November 2024 when Musk announced that xAI would enter the gaming sector. The company argued that its blockchain ecosystem and $XAI token were directly affected. The filing noted, “This is a classic case of trademark infringement that requires the Court’s intervention to remedy.”
Gaming Studio and Grok Chatbot Confusion
The legal complaint described how Musk’s gaming studio announcement caused “substantial actual confusion.” Media outlets used Xai’s branding to represent Musk’s project, while online users assumed both ventures were related.
Further issues emerged when Grok, the chatbot developed by xAI, incorrectly claimed that the Ethereum gaming platform was part of Musk’s company. Ex Populus argued that Grok’s misinformation reinforced the public’s misunderstanding and harmed the blockchain network’s identity.
Reputational Damage and Public Controversies
Ex Populus stated that reputational damage has worsened due to controversies involving Musk and xAI. The complaint referenced reports of Grok generating antisemitic and violent responses. Attorneys argued that such negative attention has been wrongly linked to the Xai brand.
The filing also included concerns over consumer sentiment. “
Plaintiff is not only being irreparably harmed by the loss of control over its hard-earned goodwill in its XAI Trademark… but also Plaintiff is damaged because the confusing association with Elon Musk is resulting in significant negative consumer sentiment,” the complaint noted.
USPTO Rulings and Court Requests
The lawsuit referenced decisions by the U.S. Patent and Trademark Office, which suspended several of Musk’s xAI trademark applications. The office cited potential conflicts with the existing XAI registration.
Ex Populus said Musk’s legal team recently threatened to challenge its trademark, adding more pressure on the company. The lawsuit is asking the court to stop xAI from using the disputed name in gaming and blockchain contexts. It is also seeking damages for infringement, loss of goodwill, and reputational harm.
In a public statement, Ex Populus said, “This case isn’t just about Ex Populus or Xai. It speaks to something bigger: the right of smaller innovators to build without having their identity swallowed by tech giants.” At the time of reporting, neither Musk nor representatives of xAI had issued a response.
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