The blockchain-based Xai network has filed a lawsuit against Elon Musk's xAI, alleging trademark infringement and unfair competition.
Details of the Lawsuit Against xAI
The lawsuit was filed in the U.S. District Court for the Northern District of California. The complaint states that Musk's xAI has caused widespread marketplace confusion and harmed the brand of Xai, developed by Delaware corporation Ex Populus. Ex Populus claims to have used the XAI trademark in U.S. commerce since June 2023 for its gaming network and $XAI token. "This is a classic case of trademark infringement that requires the Court’s intervention," the filing states.
Market Confusion Following xAI's Launch
The dispute intensified after Musk launched xAI in July 2023 and announced plans to create a gaming studio in November 2024. Ex Populus claims this overlap has triggered confusion among consumers and media outlets, including Musk's chatbot Grok, which allegedly linked their ventures. Court documents cite examples of Grok's responses that conflated "Xai" the gaming token with "xAI" the AI lab.
Broad Implications for Both Companies
Ex Populus is seeking damages, cancellation of xAI’s pending applications, and a court order barring Musk’s firm from using the “XAI” name in connection with gaming or blockchain services. "There is no remedy at law for the magnitude of harm Defendants have caused," Ex Populus stated in its filing. Xai operates a blockchain-powered gaming ecosystem, while xAI aims to compete with companies like OpenAI and Google in the generative AI space.
Ex Populus's lawsuit against xAI highlights the importance of trademark protection in the rapidly expanding technology and entertainment sector. The outcome may significantly affect both Xai's future and xAI's reputation.
