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The creators of Xai, a layer-3 Ethereum gaming blockchain, have filed a lawsuit against Elon Musk’s xAI, alleging trademark infringement and brand confusion.
The complaint, filed Thursday in federal court in Northern California, seeks to stop Musk’s artificial intelligence company from using the “xAI” name in contexts related to video games and blockchain.
Ex Populus, the company behind Xai, argues that Musk’s announcement in November of plans to launch a video game studio under xAI triggered widespread confusion. The company claims that news outlets and online commentators mistakenly used the blockchain’s Xai logo in coverage of Musk’s venture. Even Grok, Musk’s AI chatbot, reportedly told users that both Xai and xAI were owned by Musk’s companies.
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In addition, lawyers pointed out in the indictment that Musk's AI bot Grok called itself “Mechagitler” and made anti-Semitic, racist, and sexually aggressive comments on the X platform.
Ex Populus’ attorneys argue that this misrepresentation damages their established gaming brand and risks undermining years of development. The lawsuit demands that Musk’s company cease using any branding that could be mistaken for Xai in video game and blockchain contexts.
Musk founded xAI in July 2023 with a mission to develop artificial intelligence to “understand the universe.” The company has since launched Grok, an AI chatbot integrated into X, formerly Twitter. The November announcement about xAI moving into gaming with the slogan “make games great again” expanded its scope further, setting the stage for conflict with Ex Populus.
The outcome of this lawsuit could affect how xAI brands its future gaming initiatives and may set a precedent for how AI companies navigate conflicts with established blockchain ventures. For now, all eyes are on whether Musk will defend xAI’s gaming ambitions in court or pivot to avoid a drawn-out legal battle.
We also wrote earlier that Bitcoin fails to hold gains as Ethereum rises.