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ToggleBlockchain gaming network Xai has officially filed a lawsuit against billionaire Elon Musk 's artificial intelligence company xAI , alleging trademark infringement and unfair competition. The lawsuit, filed in federal court in the Northern District of California, claims that the use of a nearly identical name has caused serious confusion in the market , severely affecting Xai's brand.
Xai and the XAI brand existed before xAI was born.
According to the filing, Xai is operated by Ex Populus , a company headquartered in Delaware (USA). This ecosystem has brought the XAI brand into commercial operation in the US since June 2023. In addition to the $XAI Token , the network also develops blockchain infrastructure for games, digital transactions, artificial intelligence in games and data management.
Meanwhile, Elon Musk only announced the company xAI in July 2023 with the goal of “understanding the nature of the universe”. However, in November 2024, Musk suddenly announced that xAI would open a game studio integrating artificial intelligence, further causing confusion between the two brands to explode.
Many users, including some newspapers and Musk's own AI assistant Grok , have mistakenly associated Xai with xAI, prompting Ex Populus to take legal action to protect its trademark.
“Dark Shadow” from Elon Musk's Controversial Image
The lawsuit stresses that Xai’s damages go beyond lost brand recognition. The company has also suffered from the negative impact of Elon Musk’s controversial image . Musk’s statements and AI products often create controversy, and this mistaken association has turned users away from Xai.
Additionally, Xai has suffered “significant negative consumer sentiment” for being associated with Musk, while the company has no connection.
Another notable detail is that Musk's legal team is accused of pressuring Ex Populus to cancel its ownership of the XAI trademark this month. However, the US Patent and Trademark Office (USPTO) has suspended many of xAI's trademark applications due to concerns about overlap with Ex Populus' XAI trademark.
In this case, Ex Populus asks the court to:
Cancel all xAI trademark applications in the gaming and blockchain sectors.
Force Musk and xAI company to stop using confusing name.
Compensation for damages for trademark infringement.
Ex Populus stressed: “No legal remedy can fully compensate for the damage caused by the defendant.”
XAI is the first Layer 3 in the Arbitrum ecosystem, designed to bring traditional players into the world of web3 gaming.
Xai operates as an Arbitrum Orbit chain (Layer 3 on Arbitrum), leveraging Anytrust technology to achieve maximum speed and minimum costs. Unlike other “self-governing” Orbit chain , Xai will benefit from direct technical support from Offchain Labs, the team behind the Layer 2 Arbitrum platform.
Also Read: What is XAI? The Hot GameFi Project Just Listed on Binance Launchpool
