- Ex Populus, the company behind Ethereum’s XAI gaming network, has filed a trademark infringement lawsuit against Elon Musk’s xAI.
- The case seeks to block Musk’s company from using the “xAI” mark, with potential outcomes that could impact both the XAI token’s future and broader blockchain gaming adoption.
Ethereum-based gaming network XAI, operated by Delaware corporation Ex Populus, has filed a federal trademark infringement lawsuit against Elon Musk’s artificial intelligence venture xAI, alleging marketplace confusion and violation of its prior rights.
Ex Populus registered the XAI trademark in June 2023, a month before Musk announced the formation of his AI company, xAI, in July 2023. The lawsuit highlights that both firms now operate in overlapping markets, particularly in AI-driven gaming, making confusion inevitable.
Musk intensified the dispute in November 2024 when he revealed plans for xAI to launch a gaming studio, declaring it would “make games great again,” a move that directly clashed with Ex Populus’s established presence in blockchain gaming.
Marketplace Confusion and Reputational Damage
According to court filings, the overlap has caused widespread marketplace confusion, further amplified by Musk’s massive following. His game studio announcement alone reached over 36 million people on social media. Ex Populus cited multiple examples, including instances where xAI’s own chatbot, Grok, incorrectly claimed that “XAI_GAMES” referred to Musk’s gaming projects.
News outlets and social media algorithms have repeatedly conflated the two companies, making it difficult for Ex Populus to protect its brand identity. Beyond confusion, Ex Populus argues its reputation has been harmed by unwanted association with Musk’s controversies
Notably, Grok faced backlash after promoting violent and racist content, raising concerns for Ex Populus about reputational spillover into its own blockchain gaming ecosystem.
The U.S. Patent and Trademark Office (USPTO) has already suspended several xAI trademark applications, including “xAI” and “XAI GROK,” citing the likelihood of confusion with Ex Populus’s earlier registration.
Musk’s team had also attempted to secure priority rights by purchasing an abandoned “X.AI” trademark, but the claim was rejected, as the mark had been abandoned since 2021.
Legal Demands and Broader Trademark Battles
Ex Populus is seeking a permanent injunction blocking Musk’s xAI from using the disputed trademarks, cancellation of existing xAI registrations, and invalidation of five pending applications.
The lawsuit also demands monetary relief, including disgorgement of profits, treble damages under federal law, and punitive damages under state law.
Tensions escalated earlier this month when Musk’s legal team threatened to file proceedings to cancel Ex Populus’s registration unless the gaming company consented to xAI’s global trademark filings. Instead, Ex Populus doubled down with this lawsuit.
Meanwhile, Musk’s xAI has been preparing its own legal fight, most recently targeting Apple over alleged antitrust practices that it claims favor OpenAI’s ChatGPT while suppressing xAI’s Grok chatbot on the App Store.
XAI Token Struggles Amid Legal Uncertainty
The timing of the lawsuit is notable as Ex Populus’s XAI token has plunged 96.7% from its all-time high of $1.60 in March 2024. Broader weakness in blockchain gaming adoption has also weighed on the project. However, a successful legal outcome could revive interest in the token, especially if the dispute with Musk captures mainstream attention.
Speculation within the crypto community suggests Musk could eventually attempt to acquire Ex Populus outright to resolve the conflict, a move that would send shockwaves across both the AI and blockchain gaming sectors.
For now, the case underscores the growing intensity of intellectual property disputes in the crypto and Web3 space, as blockchain-native brands increasingly collide with big tech and AI giants entering overlapping markets.
