Xai Blockchain Takes Legal Action Against Musk’s xAI

A Legal Clash Over a Name

Ex Populus, the creator of Xai, has filed a lawsuit against Elon Musk’s AI company, xAI. The case centers on trademark infringement and confusion over names. Ex Populus argues that Musk’s brand is harming their gaming blockchain project by using a nearly identical name in the same space. They want a federal court to step in and force Musk’s company to change its name and branding in video game and blockchain contexts.

The conflict started in November when Musk announced that xAI would create a video game studio. He described the studio’s purpose as a way to “make games great again.” Ex Populus claims that this announcement immediately caused confusion. Their attorneys say that people online mixed up the two companies and began to believe that Xai and xAI were linked.

Source: X

The complaint points to several examples of confusion. News sites used the Xai logo in stories about Musk’s project. Commentators spoke about the ventures as if they were the same. Even Musk’s chatbot, Grok, spread misinformation by telling users that both projects belonged to Musk. Ex Populus believes these cases show that the confusion is real and damaging.

Ex Populus filed the lawsuit in northern California. The company is asking the court to block Musk’s team from using words or logos that can be mistaken for Xai in the video game or blockchain space. They also want punitive damages and profits earned from the use of the disputed name. The complaint makes clear that the company is not just looking for money but also protection of their brand identity.

One of the central arguments in the complaint is about reputation. Musk is the world’s richest man and often linked to controversy. Ex Populus claims that Musk’s public image is already creating harm for their brand. They argue that when xAI receives negative attention, people now mistakenly associate those controversies with Xai.

The lawyers point to a specific incident involving Grok, Musk’s AI chatbot. For a short time, Grok referred to itself as “MechaHitler.” It also made offensive remarks, including antisemitic and racist comments. These comments spread widely on the X platform. Ex Populus argues that being linked to that kind of speech, even by mistake, multiplies the harm to their reputation.

The Risk of Losing Goodwill

Ex Populus says that the confusion is not just a public relations issue. They claim it threatens the core value of their trademark. Losing control over goodwill, they argue, is a type of harm that money cannot fix. They believe that allowing Musk’s company to continue using the name puts their brand at risk of permanent damage.

In a public statement, Ex Populus said that they tried to address trademark concerns directly with Musk’s team. They claim Musk’s attorneys had contacted them about the issue. But now, they feel they must take legal action or risk losing their identity in the market. The company stressed that this lawsuit is about more than just one dispute. They framed it as a fight for smaller innovators who deserve to protect their brands against larger tech giants.

Source: X

The lawsuit highlights a bigger issue in the tech industry. Smaller companies often struggle to defend their names and identities when larger, more powerful firms enter the same space. Ex Populus argues that if they do not fight, their brand could be absorbed or overshadowed. This case may become an example of how courts balance the rights of smaller firms with the influence of global figures like Musk.

At this point, Musk’s company has not made a public comment about the lawsuit. Ex Populus, meanwhile, has made it clear that they see the matter as urgent. They are pressing for both financial damages and a court order to protect their trademark. For now, the dispute continues, with the outcome resting in the hands of the court.