xAI Hit With Lawsuit From Ethereum Gaming Network Xai

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Elon Musk’s xAI Hit With Lawsuit From Ethereum Gaming Network Xai

Written by Aaron S.,

Editor-In-Chief

Last Updated: August 25, 2025

Key Takeaways

Xai filed a lawsuit in California claiming Elon Musk’s xAI infringed on its trademark and created unfair competition in gaming and blockchain;
Ex Populus said it has used the “XAI” name since June 2023, but confusion grew after Musk launched xAI and later announced a gaming studio;
The lawsuit seeks damages, cancellation of xAI’s trademark filings, and a ban on using the disputed name in gaming or blockchain services.

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Elon Musk’s xAI Hit With Lawsuit From Ethereum Gaming Network Xai

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Elon Musk’s artificial intelligence company (AI), xAI, is facing a lawsuit from Ethereum ETH $3,114.75 -based gaming network Xai.

The case, filed in the Northern District of California, accuses xAI of trademark infringement and unfair competition.

Xai is run by Ex Populus, a Delaware firm that said it has used the "XAI" mark in US commerce since June 2023. That name appears in its blockchain gaming network, its XAI token, and tools that support gaming logic, digital rewards, AI-driven features, and transaction management.

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According to the filing, confusion started after Musk launched xAI in July 2023. The problem became more serious in November 2024 when Musk announced that his company planned to open a gaming studio.

Xai argued that people mistakenly believed the two ventures were related, with examples including customers, media reports, and even xAI’s chatbot Grok linking them together.

Ex Populus claimed its reputation has been harmed because Musk’s public controversies and criticism of xAI products have led to negative views spilling over onto Xai.

The complaint also accuses Musk’s lawyers of trying to pressure Ex Populus by threatening to challenge its registration. At the same time, the US Patent and Trademark Office has already suspended several of xAI’s trademark applications.

Xai is asking the court to block Musk’s company from using the disputed name in gaming or blockchain-related services, cancel xAI’s pending applications, and award damages.

Meanwhile, Musk recently said that xAI plans to take Apple to court. What happened? Read the full story.