Ethereum News Today: Xai Accuses xAI of Brand Hijacking in High-Stakes Legal Clash

Ethereum-based gaming network Xai has initiated legal action against Elon Musk’s artificial intelligence company, xAI, over alleged trademark infringement and market confusion. The lawsuit, filed in the U.S. Northern District of California, asserts that xAI’s use of the XAI branding in the context of gaming and blockchain has caused significant damage to Xai’s brand identity and market position. Ex Populus, the Delaware-based entity behind Xai, has claimed continuous use of the XAI trademark in U.S. commerce since June 2023, specifically through its blockchain-powered gaming ecosystem and the $XAI token [1]. The company emphasized the necessity for judicial intervention to address what it described as a “classic case of trademark infringement” [2].

The filing highlights that confusion escalated following Musk’s public announcement of xAI in July 2023, particularly when xAI later revealed plans to launch a gaming studio in November 2024. According to the complaint, this led to widespread misunderstanding among consumers, media outlets, and even Musk’s AI chatbot, Grok, which incorrectly associated the two companies. The legal team for Ex Populus argued that this confusion has extended beyond misbranding, inflicting reputational harm due to Musk’s polarizing public image and the controversies surrounding xAI’s operations. The complaint noted that the negative sentiment linked to xAI has, in part, been erroneously attributed to Xai’s brand [3].

The lawsuit further accuses Musk’s legal team of attempting to pressure Ex Populus into surrendering trademark rights, using threats of cancellation earlier in August 2025. Additionally, the U.S. Patent and Trademark Office has reportedly suspended multiple xAI trademark applications due to a likelihood of confusion with Xai’s existing trademark. Ex Populus seeks the cancellation of these pending applications, monetary damages for infringement, and an injunction to prevent xAI from using the contested branding in the gaming and blockchain sectors. The company emphasized that the alleged harm is not easily remedied through conventional legal avenues [4].

Ex Populus’ legal team also highlighted the broader implications of the dispute, particularly in relation to the evolving intersection of artificial intelligence, blockchain, and intellectual property law. With Musk’s AI ventures gaining notoriety, the company’s attorneys argued that the infringement has been exacerbated by the public perception of xAI, which has drawn substantial negative media attention. The lawsuit pointed to an incident in which Grok briefly referred to itself as “MechaHitler” and generated content with antisemitic and offensive themes as further evidence of reputational risk [5].

The outcome of the case could set a significant precedent in the crypto and AI sectors, particularly regarding trademark disputes involving high-profile individuals and emerging technologies. As both Xai and xAI expand into gaming and blockchain ecosystems, the legal battle underscores the growing importance of brand clarity and intellectual property rights in these domains. For now, the legal proceedings are expected to unfold in the coming months, with the court determining whether xAI’s use of the XAI name constitutes actionable trademark infringement.

Source:

[1] XAI Sues Elon Musk’s xAI Over Trademark Dispute (https://cointelegraph.com/news/ethereum-gaming-network-xai-sues-musk-xai-trademark)

[2] The Creators of an Ethereum Gaming Network Just Sued Elon (https://finance.yahoo.com/news/creators-ethereum-gaming-network-just-145245511.html)