Elon Musk’s xAI sued by gaming network Xai

The battle has begun between two software companies.

The Ethereum-based gaming network Xai is taking xAI, Elon Musk’s AI company, to court. Xai’s parent company, Ex Populus, filed a lawsuit in California for trademark infringement. At the heart of the case lies the question of whether there is a likelihood of confusion between the two marks. According to Ex Populus, the similarity between “Xai” and “xAI” is misleading and damaging to their brand.

Xai primarily focuses on gaming, but its platform also supports digital transactions, game logic, reward systems and data management. xAI, by contrast, operates in artificial intelligence. Still, Ex Populus argues that the overlap is significant enough to cause confusion. On top of that, xAI is already expanding into gaming and blockchain. In November 2024, Musk’s company even announced the launch of its own game studio. According to Ex Populus, this move greatly increases the risk of confusion.

And there are already examples: news outlets mistakenly used the Xai logo in articles about xAI, reports surfaced about a so-called “Elon’s Xai token” and xAI’s chatbot Grok mixed up the two companies.

Ex Populus further claims that the damage extends beyond mere lost goodwill. Xai also suffered reputational harm due to Musk’s polarizing image and the controversies surrounding xAI’s products.

The company stresses that it holds the older trademark registration: Xai was registered in the U.S. in June 2023, while Musk only announced xAI a month later, in July 2023. The U.S. Patent and Trademark Office (USPTO) has already rejected several of xAI’s trademark applications because of the risk of confusion with Xai’s mark, though the proceedings are still ongoing.

There’s more: Musk’s company allegedly tried to pressure Xai. According to Ex Populus, xAI’s lawyers threatened in August 2025 to formally challenge the Xai registration unless the company agreed to consent to their application.

Ex Populus also states that Musk’s company unsuccessfully tried to claim earlier rights by acquiring an abandoned third-party trademark registration (“X.AI”). However, they argue that once a mark is abandoned, it cannot be revived to establish senior rights.

What’s next? Ex Populus is asking the court to ban xAI from using its name for gaming- or blockchain-related products and services. In addition, they are seeking damages for reputational harm. Will Musk be able to talk his way out of this one too? The ruling is pending – stay tuned!

Author: Erik Stegeman

Bio: Erik Stegeman is a trademark attorney and specialist in trademark protection for bands, DJs and artists. His client portfolio includes many famous DJ’s like Charlotte de Witte, Swedish House Maffia and Tiësto. He writes a lot about music trademark infringements. And if you are lucky, he will give you hints on the latest band and DJ’s.

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