Ethereum News Today: Xai Accuses xAI of Trademark Sabotage in High-Stakes Gaming Name War

Ethereum-based blockchain gaming network Xai has filed a lawsuit against Elon Musk’s AI venture xAI, citing trademark infringement and unfair competition. The legal action, submitted in the U.S. District Court for the Northern District of California, alleges that xAI’s use of the “XAI” name has caused widespread market confusion and reputational harm to Xai’s brand. According to the filing, Ex Populus, the Delaware-based company behind Xai, has used the XAI trademark since June 2023 across its blockchain gaming ecosystem and associated token. The lawsuit further argues that confusion intensified when xAI announced plans to launch a gaming studio in November 2024, blurring the lines between the two entities in the eyes of consumers, media, and even xAI’s own AI chatbot, Grok, which incorrectly linked the two ventures [1].

The legal filing highlights multiple instances of consumer and media confusion, including misattributed reports and branding inconsistencies. For example, some users on cryptocurrency platforms mistakenly assumed that xAI and Xai were the same entity, while several media outlets reportedly used Xai’s official logo when covering xAI-related news. The lawsuit also claims that the public association with Musk, whose personal controversies and polarizing image have led to negative sentiment around xAI products, has spilled over onto Xai. This reputational damage, according to the filing, has undermined the trust and credibility that Xai has built over years within the gaming and blockchain communities [2].

Ex Populus further alleges that xAI’s legal team attempted to pressure the company into relinquishing its trademark rights by threatening to challenge or cancel its USPTO registration. In response, the U.S. Patent and Trademark Office has already suspended several of xAI’s trademark applications due to a likelihood of confusion with Xai’s existing mark. Xai seeks a court order to prohibit xAI from using the disputed name in gaming and blockchain contexts, along with the cancellation of pending trademark applications and monetary compensation for reputational and economic damage. The lawsuit argues that without these measures, confusion will continue to harm Xai’s business as xAI expands its market presence [1].

The legal battle underscores the growing complexities at the intersection of AI, blockchain, and intellectual property rights. As both Xai and xAI aim to establish themselves in the gaming and technology sectors, the dispute raises critical questions about the enforcement of trademarks in overlapping industries. Legal analysts suggest that the outcome could set precedents for how similar conflicts are resolved in the future, particularly in rapidly evolving fields where brand naming conventions are often ambiguous [3].

Meanwhile, the XAI token, which is central to Xai’s ecosystem, has experienced a significant decline in value. As of the latest data, the token is trading at $0.04953, nearly 97% below its all-time high of $1.60, reached in March 2024. This financial setback, while not directly attributed to the lawsuit, highlights the broader challenges Xai faces in maintaining market confidence and brand identity [2].

The case has also sparked a range of public and social media reactions. While some argue that the lawsuit is a strategic move by Xai to leverage Musk’s influence, others support the claims of brand confusion and reputational damage. The broader implications of the dispute extend beyond the immediate parties, influencing how startups and investors approach intellectual property and branding strategies in emerging technologies. As the legal proceedings unfold, the outcome may shape the regulatory and competitive landscape for AI and blockchain ventures in the coming years [4].

Source:

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

[2] Ethereum Gaming Platform Xai Takes Elon Musk's xAI to Court in Trademark Battle (https://thecryptobasic.com/2025/08/25/ethereum-gaming-platform-xai-takes-elon-musks-xai-to-court-in-trademark-battle/)

[3] xAI Hit With Lawsuit From Ethereum Gaming Network Xai (https://www.bitdegree.org/crypto/news/elon-musks-xai-hit-with-lawsuit-from-ethereum-gaming-network-xai)

[4] Xai vs. xAI: Trademark Showdown Between Blockchain and AI Marvels (https://opentools.ai/news/xai-vs-xai-trademark-showdown-between-blockchain-gaming-and-ai-marvels)