Small Gaming Firm Ex Populus Sues Elon Musk’s xAI Over ‘Xai’ Trademark Dispute
San Francisco, CA — August 23, 2025 — Ex Populus, a San Francisco-based blockchain gaming startup, has filed a federal lawsuit against Elon Musk’s artificial intelligence company, xAI, alleging trademark infringement and brand confusion over the use of the “Xai” name. The suit, filed on August 20, 2025, in the U.S. District Court for the Northern District of California, claims that xAI’s branding is causing significant misidentification with Ex Populus’ Xai crypto gaming platform, which has been active since June 2023.
The Core of the Dispute
Ex Populus, known for its Layer 3 blockchain gaming network designed for indie developers, argues that xAI’s use of a similar name has led to widespread confusion among customers, developers, and even AI tools. The complaint cites instances where users have attributed the Xai token to Musk, misused the Xai logo, and conflated the two brands on social media platforms. Screenshots from Musk’s AI chatbot, Grok, which reportedly mixed up the entities, were included as evidence. According to Ex Populus, this overlap threatens partnerships, customer trust, and the integrity of its gaming ecosystem.
The lawsuit follows direct communication from xAI’s legal team, which Ex Populus claims attempted to pressure the smaller company into signing over its trademark rights. A post on X by @XAI_GAMES on August 22, 2025, stated, “We took legal action today to protect the Xai brand. With increased confusion around Elon Musk’s AI company (@xai), it’s our responsibility to safeguard the brand our community trusts.” The company emphasized that it had “no choice but to act” to defend its trademark under U.S. law or risk forfeiture.
Legal and Industry Context
The dispute centers on Ex Populus’ established use of the Xai trademark, promoted through official channels, events, and public documentation since 2023. The gaming firm argues that xAI’s expansion into gaming-related AI applications exacerbates the issue, as both companies operate in overlapping tech and gaming spaces. “The heart of these cases is what exactly is the trademark the company is trying to protect,” said Shubha Ghosh, director of Syracuse University College of Law’s Intellectual Property Law Institute, in a Benzinga report, highlighting the complexity of such disputes.
This case adds to xAI’s growing list of trademark challenges. The company has faced separate disputes over its chatbot name “Grok,” with the U.S. Patent and Trademark Office (USPTO) suspending xAI’s trademark applications due to conflicts with entities like AI chipmaker Groq, software provider Grokstream, and startup Bizly, which claimed prior rights to the “Grok” name since 2021. The USPTO also cited 28 prior filings blocking xAI’s “XAI GROK” trademark attempts, as reported by Gerben IP on June 17, 2025.
Broader Implications
Ex Populus framed the lawsuit as a defense of smaller innovators against larger tech firms, a sentiment echoed in a Juice Gaming News report: “The case extends beyond a single company, raising concerns about smaller brands being sidelined.” Posts on X, such as one by @DrewBleam on August 23, 2025, described xAI’s actions as an attempt to “bully” Ex Populus, noting the “noble, but rough” battle ahead for the gaming firm. Another post by @SerRamic suggested that Ex Populus could sell the trademark to xAI for a significant sum and rebrand, given the high costs and duration of litigation.
For xAI, the dispute comes at a time of rapid expansion, including its $33 billion acquisition of the X platform and a $5.3 billion funding round to bolster its AI capabilities, as reported by WinBuzzer. The company’s growing presence in gaming, tied to Musk’s “Make Games Great Again” vision for an AI-driven game studio, heightens the stakes of the trademark conflict.
What’s Next?
Ex Populus is seeking an injunction to prevent xAI from using the “Xai” brand and damages for the alleged infringement. The company stated it will provide updates only through official channels, emphasizing its commitment to protecting its community and developer ecosystem. Meanwhile, xAI has not publicly commented on the lawsuit, though its history of ignoring collaboration offers in the “Grok” dispute with Bizly suggests a contentious legal fight ahead.
As the case unfolds, it underscores the challenges of intellectual property in the fast-evolving tech and gaming sectors. The outcome could set a precedent for how smaller firms protect their brands against industry giants, with the legal community and gaming industry watching closely. For now, Ex Populus stands firm in its mission to safeguard the Xai brand, while Musk’s xAI faces another hurdle in its ambitious AI-driven agenda.