Xai, an Ethereum-based gaming blockchain network, has filed a lawsuit against Elon Musk's artificial intelligence company xAI in the Northern District of California on August 22, 2025. The legal complaint alleges trademark infringement and unfair competition, claiming that Musk's use of the "xAI" name has caused "substantial actual confusion" in the market since his company's announcement in July 2023.
Ex Populus, the Delaware corporation behind Xai, states it has used the XAI trademark in U.S. commerce since June 2023 for its blockchain gaming ecosystem and $XAI token. The dispute intensified when Musk announced xAI's entry into gaming in November 2024, with media outlets and even Musk's own chatbot Grok mistakenly linking the two companies. Grok reportedly told users that the Ethereum gaming project was part of Musk's company, exacerbating the confusion.
The lawsuit cites specific damages, including reputational harm from being associated with controversies surrounding Musk and xAI products, referencing incidents where Grok generated offensive content including antisemitic and violent messages. Ex Populus claims it has faced "significant negative consumer sentiment" due to this association and alleges that Musk's legal team recently threatened to challenge their trademark rights.
The U.S. Patent and Trademark Office has already suspended several of xAI's trademark applications due to potential conflicts with Xai's existing mark. Ex Populus is seeking damages, cancellation of xAI's pending applications, and a court order preventing Musk's company from using the name in gaming and blockchain contexts.