The Ethereum-based gaming network Xai has filed a lawsuit against Elon Musk's xAI, alleging trademark infringement and unfair competition.
Overview of Xai's Lawsuit Against xAI
The lawsuit was filed on August 21, 2025, in the Northern District of California and claims that Musk's xAI has created market confusion, harming Xai's brand. Ex Populus, the corporation behind Xai, stated it has used the XAI trademark in US commerce since June 2023, including through its gaming ecosystem and the $XAI token. The filing noted, 'This is a classic case of trademark infringement requiring the Court's intervention to remedy.'
Reasons for Market Confusion
The complaint alleges confusion began after Musk announced his company, xAI, in July 2023, and deepened when he stated in November 2024 that xAI planned to launch a gaming studio. The filing states that 'marketplace confusion abounded as to whether Defendants/Musk were associated with, owned, or sponsored Plaintiff’s XAI Trademark or the associated goods and services.'
Pressure from Musk's Team
The filing accuses Musk's legal team of attempting to pressure Ex Populus into relinquishing rights by threatening to cancel its registration earlier this month. It also mentioned that the US Patent and Trademark Office has already suspended several of Musk's xAI trademark applications due to a likelihood of confusion with Xai's existing mark. Ex Populus is seeking cancellation of xAI's pending applications, damages for infringement, and a court order to prevent Musk's company from using the disputed name in gaming and blockchain contexts.
Xai's lawsuit against xAI raises important questions about trademark rights and the consequences of market confusion. The court's further actions will be significant for both companies and their users.
