Xai sues Musk's xAI

Ex Populus, the company behind the Ethereum gaming network Xai, has filed a lawsuit against Elon Musk's AI company, xAI, in the Northern District of California. The suit alleges trademark infringement and unfair competition, claiming that the similarity in names has caused significant market confusion.

Ex Populus asserts it has been using the XAI trademark since June 2023 for its blockchain gaming ecosystem and $XAI token. The company argues that the confusion intensified after Musk announced xAI's plans to launch a gaming studio in November 2024. Publications, consumers, and even xAI's Grok AI have incorrectly linked the two ventures. The US Patent and Trademark Office has also suspended several of xAI's trademark applications due to the similarity with Xai's existing mark.

Ex Populus seeks a court order to prevent xAI from using the name in gaming and blockchain contexts, as well as financial compensation for damages. The company also alleges that Musk's legal team attempted to pressure them into relinquishing their trademark rights. Ex Populus argues that the association with Musk's public image has caused reputational harm, citing instances where Grok generated offensive content attributed to Xai.