Trademark War Erupts as Elon Musk Expands xAI into Gaming

Quick Highlights

• Xai accuses Musk’s xAI of trademark infringement amid gaming expansion
• USPTO reportedly suspended xAI trademarks due to brand confusion
• Ex Populus seeks an injunction and damages in the legal battle

Xai Sues Elon Musk’s xAI Over Trademark Clash Amid Gaming Expansion

Ex Populus, the studio behind the Layer-3 gaming blockchain Xai, has filed a lawsuit against Elon Musk’s artificial intelligence company, xAI, alleging trademark infringement and unfair competition.

The legal battle highlights rising tensions as Musk’s company expands into gaming, a domain long occupied by Xai. The conflict escalated after Musk announced in November 2024 that xAI would launch a gaming studio — prompting confusion between the two similarly named entities.

The Lawsuit: Brand Confusion & Backlash

The complaint, filed by Ex Populus, states that xAI has caused significant marketplace confusion, misleading users and damaging the Xai brand.

Ex Populus further claims that the Xai team has faced “significant backlash” due to public perception of Musk’s actions and reputation, stating that the damage extends beyond brand confusion and into reputational harm.

Trademark Disputes & Government Intervention

The lawsuit also alleges that xAI’s lawyers pressured the Xai team to abandon their trademark rights. Meanwhile, the U.S. Patent and Trademark Office (USPTO) has reportedly suspended several of xAI’s trademark applications due to the potential for confusion.

In response, Ex Populus is seeking:

• A court injunction to stop xAI from further use of the disputed trademark
• Financial damages tied to the alleged harm done to Xai’s brand and business