The Xai project team, which is developing a third-level gaming blockchain (L3), has initiated legal proceedings against xAI, owned by the famous billionaire Elon Musk. The plaintiffs accuse xAI of trademark infringement regarding Xai and engaging in unfair competition in the market.
This is reported by Finway
Reasons for the conflict between Xai and xAI
The lawsuit was filed by Ex Populus — a distributor of games for Xai, which formed a partnership with the Xai Foundation in the summer of 2023, becoming the first game supplier on this blockchain platform. It is this close connection with Xai that prompted Ex Populus to defend the brand’s rights in court.
The court complaint emphasizes that the actions of xAI, particularly Elon Musk’s decision in November 2024 to announce the creation of a gaming studio, have led to confusion among consumers. As a result, the Xai brand has suffered reputational damage, and users have increasingly associated Xai with Musk and his company.
Allegations of pressure and demands from Ex Populus
The lawsuit provides examples where xAI and its products were mistakenly associated with Xai. In particular, even the Grok chatbot developed by Musk’s company allowed for such assumptions. Ex Populus claims that the Xai team has faced “significant negative sentiment” due to Elon Musk’s reputation and his actions.
“The alleged damage extends beyond lost business reputation, which explains the need for court intervention.”
According to the plaintiffs, legal representatives of xAI pressured the Xai team to abandon their trademark rights. It is noted that the U.S. Patent and Trademark Office has already suspended the review of several xAI applications due to the confusion arising between the brands.
Ex Populus demands that the court prohibit xAI from any further actions that may infringe on the trademark rights of Xai, as well as compensate for the damages inflicted on the brand. This legal dispute could be pivotal for the future development of both companies in the gaming and technology market.