Ethereum-based gaming platform Xai has taken Elon Musk’s AI venture xAI to court. The lawsuit accuses Musk’s company of trademark infringement, brand confusion, and reputation damage. The complaint was filed by Ex Populus, the gaming studio behind Xai. Submitted to the U.S. District Court for the Northern District of California, the lawsuit argues Musk’s firm violated Xai’s established trademark rights. Ex Populus says it launched Xai and its native token XAI in June 2023. Musk announced xAI a month later, in July 2023. That timeline, the company claims, proves its brand existed first and deserves protection. Market Confusion Grows The lawsuit says confusion skyrocketed when Musk’s company expanded into gaming. In November 2024, xAI revealed plans to launch a gaming studio, putting both firms in the same industry. Examples of mix-ups quickly followed. Users on Binance and other crypto platforms assumed Xai and xAI were the same. Some media outlets even used Xai’s official logo in stories about Musk’s firm. The problem didn’t stop there. Grok, xAI’s chatbot, reportedly told users that Xai was part of xAI. This, Ex Populus argues, cemented the false belief that both companies were connected. Reputation Damage As Drama Unfolds Ex Populus says the unwanted link hurt its image. Grok faced criticism for generating antisemitic and violent content. Some users wrongly tied those outputs to Xai. The company argues this destroyed years of trust built with gamers and partners. It calls the harm to its brand “irreparable.” The lawsuit claims Musk’s legal team tried to pressure Xai into giving up its trademark rights. Lawyers allegedly threatened to challenge or cancel Xai’s registration. But so far, the U.S. Patent and Trademark Office (USPTO) has sided with caution. Several xAI trademark applications remain suspended due to conflicts with Xai’s earlier filing. That, Ex Populus says, proves its rights came first. What XAI Wants Ex Populus wants the court to impose strict restrictions. It seeks to: Block xAI from using the name in gaming and blockchain. Cancel pending trademarks filed by Musk’s company. Award damages for financial and reputational harm. The company argues that without court action, confusion will continue as Musk pushes deeper into gaming. The legal fight comes as Xai’s token struggles. XAI hit an all-time high of $1.60 on March 11, 2024. Today, it trades 97% below that peak, according to CoinMarketCap. At press time, XAI trades at $0.04953, down 3.85% in the past 24 hours. The lawsuit adds more pressure to a token already fighting for market confidence. #Ethereum Gaming Platform Xai Takes Elon Musk’s xAI to Court in Trademark Battle. pic.twitter.com/RIVrmTWT8r — TheCryptoBasic (@thecryptobasic) August 25, 2025 The case pits a blockchain gaming startup against one of the world’s most famous entrepreneurs. If Ex Populus wins, Musk’s company could lose the right to use xAI in gaming contexts. Until then, the dispute highlights the growing overlap between AI, gaming, and crypto, and the legal battles that follow when big names collide. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
