Ethereum Gaming Network XAI Sues Elon Musk’s xAI Over Trademark Infringement
Ex Populus, the Delaware company behind Ethereum’s blockchain-powered gaming community Xai, has filed a federal trademark infringement lawsuit in opposition to Elon Musk’s synthetic intelligence firm xAI.
The lawsuit facilities on market confusion between Ex Populus’s XAI trademark, registered federally since June 2023, and Musk’s xAI firm, introduced in July 2023.
Gaming Community Claims Prior Rights as Musk’s AI Enterprise Enters Market
Ex Populus operates one of many highest transaction quantity blockchain gaming networks globally, providing AI-driven gaming options and autonomous software program methods throughout a number of platforms.
Musk’s November 2024 announcement that xAI would “begin an AI sport studio to make video games nice once more” immediately entered Ex Populus’s established gaming territory.
The put up reached over 36 million viewers, which additional amplified shopper confusion between the 2 manufacturers working in overlapping markets.
The criticism particulars widespread market confusion, together with xAI’s personal AI assistant Grok mistakenly informing customers that “XAI_GAMES refers to xAI’s gaming initiatives.”
Ex Populus took authorized motion immediately to guard the Xai model. With elevated confusion round Elon Musk’s AI firm (@xai), it’s an enormous duty to safeguard the model that the group trusts. You may learn extra particulars at https://t.co/ce8Aw9hNCZ
— XAI
(@XAI_GAMES) August 22, 2025
Information algorithms and social media posts have persistently conflated the 2 corporations, inflicting Ex Populus to lose management over its model repute.
Ex Populus faces extra reputational injury from affiliation with Musk’s polarizing public picture.
The corporate cited incidents the place xAI’s Grok chatbot was pulled offline after selling violence and making racist feedback, creating destructive model associations for his or her gaming ecosystem.
The U.S. Patent and Trademark Workplace has already suspended a number of of Musk’s trademark functions for “xAI” and “XAI GROK” as a result of chance of confusion with Ex Populus’s prior rights.
Defendants tried to accumulate senior trademark standing by buying an deserted “X.AI” registration, however Ex Populus argues that the earlier proprietor, Bizzabo Ltd., had already deserted the mark in October 2021.
Musk’s xAI Plans Apple Lawsuit Whereas Preventing Trademark Claims
Concerning this Ex Populus lawsuit, Musk’s authorized crew tried to strain the corporate into relinquishing trademark rights via threatened cancellation proceedings.
On August 7, 2025, xAI’s counsel warned they’d petition to cancel Ex Populus’s federal registration until the gaming firm consented to worldwide xAI trademark registrations.
The most recent up to date lawsuit seeks a everlasting injunction stopping xAI from utilizing the disputed marks, cancellation of Defendant’s current trademark registration, and invalidation of 5 pending functions.
Ex Populus calls for financial reduction, together with disgorgement of earnings, precise damages, treble financial reduction below federal regulation, and punitive damages below state regulation.
Past the Ex Populus lawsuit, xAI has recently voiced plans to sue Apple over alleged antitrust violations, claiming the tech big unfairly favors OpenAI’s ChatGPT in App Retailer rankings whereas suppressing xAI’s Grok chatbot.
Whereas this lawsuit got here at a peak market rally, the case joins a broader sample of mental property disputes which have seen many crypto and blockchain corporations clashing over model rights.
XAI Token Down 96% amid Rising Mental Property Conflicts
Current months have witnessed a number of high-profile circumstances involving NFT platforms and meme coin creators defending their model rights in opposition to perceived infringers.
In July, Yuga Labs, creator of Bored Ape Yacht Membership, recently saw a $9 million trademark victory overturned primarily by the Ninth Circuit Courtroom of Appeals.
The courtroom dominated that crucial questions on shopper confusion within the firm’s case in opposition to artist Ryder Ripps required jury willpower quite than abstract judgment.
Equally, earlier this yr, Solana-based platform Pump.enjoyable confronted comparable mental property challenges when regulation companies Burwick Law and Wolf Popper issued cease and desist letters over unauthorized token creation.
The companies filed class-action lawsuits alleging Pump.enjoyable facilitated the creation of over 200 tokens infringing their emblems.
Notably, the newest lawsuit comes at a difficult time for Ex Populus’s XAI token, which has declined 96.7% from its all-time excessive of $1.60 reached on March 11, 2024.
The gaming community’s token has struggled alongside earlier broader crypto market weak point and notably decreased curiosity in blockchain gaming platforms.
A profitable authorized consequence may doubtlessly thrust the XAI token again into the market highlight, notably if the case generates vital media consideration across the trademark dispute.
The group is already speculating whether or not Musk would possibly think about buying the gaming firm outright to resolve the battle, which might be a constructive set off for the token.
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