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Elon Musk's xAI Faces Lawsuit Over Trademark Infringement and Unfair Competition in Blockchain Gaming
ByAinvest
Sunday, Aug 24, 2025 10:36 am ET1min read
Elon Musk's AI startup xAI is facing a lawsuit from a blockchain gaming network called Xai, alleging trademark infringement and unfair competition. Xai claims Musk's xAI has caused market confusion and harmed its brand. The gaming company is seeking damages, cancellation of xAI's pending applications, and a court order barring Musk's firm from using the "XAI" name. The dispute intensified after Musk launched xAI in July 2023 and announced plans to create a gaming studio.
Elon Musk's AI startup xAI is embroiled in a legal dispute with a blockchain gaming network called Xai. The gaming network, operated by Ex Populus, has filed a lawsuit alleging trademark infringement and unfair competition. Xai claims that Musk's xAI has caused market confusion and harmed its brand. The gaming company is seeking damages, cancellation of xAI's pending applications, and a court order barring Musk's firm from using the "XAI" name.The dispute intensified after Musk launched xAI in July 2023 and announced plans to create a gaming studio. Xai, which has been operating since June 2023, claims that the similarity in names has led to significant marketplace confusion. The company's complaint states that users and developers have mistakenly associated xAI and its AI assistant Grok with the Xai blockchain. This confusion has damaged Xai's brand and led to reputational harm due to Musk's polarizing public image.
The lawsuit also alleges that xAI's lawyers pressured Ex Populus to abandon its trademark rights. The U.S. Patent and Trademark Office (USPTO) has reportedly suspended several of xAI's trademark applications due to the potential for confusion. Ex Populus is seeking a court injunction to stop xAI from further use of the disputed trademark and financial damages tied to the alleged harm done to Xai's brand and business.
Beyond the trademark dispute, xAI has recently voiced plans to sue Apple over alleged antitrust violations, claiming the tech giant unfairly favors OpenAI's ChatGPT in App Store rankings while suppressing xAI's Grok chatbot. This lawsuit comes at a challenging time for Ex Populus's XAI token, which has declined 96.7% from its all-time high of $1.60 reached on March 11, 2024.
A successful legal outcome could potentially thrust the XAI token back into the market spotlight, particularly if the case generates significant media attention around the trademark dispute. The community is already speculating whether Musk might consider acquiring the gaming company outright to resolve the conflict, which would be a positive trigger for the token.
References:
[1] https://cryptonews.com/news/ethereum-gaming-network-xai-sues-elon-musks-xai-over-trademark-infringement/
[2] https://coinpaper.com/10680/trademark-war-erupts-as-elon-musk-expands-x-ai-into-gaming
[3] https://investorempires.com/xai-sues-elon-musks-xai-over-trademark-dispute/
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