Crypto Gaming Firm Ex Populus Sues Elon Musk’s xAI Over Trademark Infringement

Elon Musk’s artificial intelligence startup, xAI, is facing a trademark battle with Ex Populus, a blockchain-based gaming company that operates under the name Xai. The Delaware-based firm alleges that Musk’s venture is creating widespread confusion in the marketplace and eroding the reputation it has built around its own brand.

The lawsuit, filed on August 22 in the U.S. District Court for the Northern District of California, claims that Musk’s adoption of the “xAI” name — unveiled in July 2023 — infringes on Ex Populus’s trademark rights. The gaming company says it has been using the “XAI” mark since June 2023, primarily to power its Ethereum-based gaming ecosystem and digital asset network.

According to the complaint, the overlap has sparked significant marketplace chaos. Users and media outlets have reportedly confused the two ventures, with even Musk’s chatbot Grok at times linking the companies incorrectly.

Ex Populus stresses that its Xai ecosystem supports blockchain-driven games, smart contract–based rewards, and the $XAI token, and that Musk’s announcement in November 2024 about xAI’s potential entry into gaming only intensified the confusion.

“This is a textbook example of trademark infringement that requires judicial intervention,” the filing states.

The company further argues that Musk’s highly controversial public profile is harming its brand identity. “Plaintiff is being irreparably harmed by the loss of control over its goodwill,” the lawsuit reads, adding that association with Musk has led to “negative consumer sentiment” around its trademark.

In addition, Ex Populus accuses Musk’s legal team of using aggressive tactics, including pressuring the company to abandon its rights and threatening to cancel its registration.

The dispute has already had consequences at the regulatory level. The U.S. Patent and Trademark Office (USPTO) has suspended several of Musk’s trademark applications for xAI, citing the likelihood of confusion with Ex Populus’s preexisting XAI mark.

The lawsuit centers on which company established the XAI name first and whether Musk’s use is creating real confusion in the marketplace. A ruling against xAI could force Musk’s venture to change its branding or scale back plans in gaming and blockchain. Ex Populus argues that protecting the XAI mark is essential to prevent its token ecosystem and gaming platform from being overshadowed by Musk’s global profile.

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