Elon Musk’s xAI in a legal dispute over Xai trademark with Ethereum-based gaming network

Key Points:

• Ethereum-based gaming network Xai filed a lawsuit against Elon Musk’s xAI over trademark issues

• The lawsuit highlights consumer confusion and reputational damage caused by name similarity

• Musk’s AI venture xAI announced gaming plans months after Xai had established its brand

• Legal documents claim xAI’s actions violate existing trademarks and threaten the brand identity of Xai

Elon Musk’s xAI in a legal dispute with the Ethereum-based gaming network Xai marks another headline clash between tech titans and emerging blockchain ecosystems.

Ex Populus, the team behind Xai, has filed a lawsuit in California, citing trademark infringement and unfair competition.

The complaint argues that Musk’s xAI company has blurred the lines between both entities in public perception. It accuses Musk’s team of deepening marketplace confusion and harming the established Xai brand. This lawsuit against Elon Musk is more than a legal scuffle; it could reshape the naming norms within the AI and blockchain space.

Ex Populus claims it has used the Xai trademark since June 2023. It operates a gaming ecosystem that integrates blockchain infrastructure, in-game economies, and AI-driven logic. The use of the $XAI token is central to its platform, supporting game mechanics, rewards systems, and secure transactions.

xAI enters gaming after Xai brand launch

Tensions escalated after Musk launched xAI in July 2023, only a month after Xai had entered the market. In November 2024, xAI revealed plans to enter the gaming industry, further blurring brand distinctions. From where I stand, this timing appears to support Ex Populus’ argument that Musk’s team failed to research prior trademarks.

Evidence submitted includes mistaken references from online publications, social media, and Musk’s own AI assistant Grok, which allegedly misattributed projects to the wrong company. Consumers started questioning whether Elon Musk owned, sponsored, or partnered with Ethereum-based gaming network Xai.

This kind of confusion is dangerous in blockchain and AI industries, where brand identity builds trust. The lawsuit against Elon Musk emphasizes that the negative public sentiment surrounding his image has unfairly transferred to the Xai brand.

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Confusion affects Xai’s reputation and user trust

The complaint doesn’t stop at brand confusion. It mentions reputational damage caused by unwanted association with Musk. As far as I’m concerned, associating a polarizing figure like Musk with a startup brand could derail its user trust and growth potential.

Documents state that “significant negative consumer sentiment” has impacted the project, especially from users who disagree with Musk’s approach to AI and online behavior. The lawsuit describes this as “irreparable harm,” where Xai loses control over its goodwill and public identity.

Xai says Musk’s legal team also tried to strong-arm them. Earlier in August 2025, they allegedly threatened trademark cancellation if Ex Populus didn’t withdraw its claims.

Xai pushes back as trademark office sides with them

Ex Populus claims the U.S. Patent and Trademark Office has already suspended several trademark filings by xAI. These suspensions were based on the likelihood of confusion with the existing Xai trademark. This move strengthens Xai’s legal position in court.

The filing requests a full cancellation of Musk’s xAI trademark applications. It also seeks financial compensation and a ban on the use of “xAI” in blockchain and gaming markets.

Musk’s legal strategy underestimates the importance of distinct branding in decentralized ecosystems. When tokens and products overlap in name, investor confidence and user engagement erode.

From my perspective, this isn’t about targeting Musk. It’s about protecting fair competition and upholding intellectual property in fast-growing industries like Web3 and AI.