Ethereum chain game Xai angrily sues Musk: xAI trademark infringement, misleading the market, netizens heatedly discuss: is it a shakedown or a battle for justice?

The blockchain game project Xai in the Ethereum (ETH) ecosystem recently announced through its official X account that its development company Ex Populus has filed a trademark infringement lawsuit against Elon Musk's AI company xAI in the Northern District of California federal court on August 22. Ex Populus alleges that Musk's xAI, being highly similar to its brand name, has caused market confusion, brand damage, and unfair competition, severely impacting Xai's business interests and community trust. Ex Populus took legal action today to protect the Xai brand. With increased confusion around Elon Musk’s AI company (@xai), it’s a big responsibility to safeguard the brand that the community trusts. You can read more details at — XAI (@XAI_GAMES) August 22, 2025. Ex Populus’s main allegations and claims According to the information disclosed on Ex Populus's official website, Ex Populus claims that it has been using the "XAI" trademark in the American market since June 2023, applying it to its Ethereum-based blockchain gaming ecosystem and the $XAI token. However, Musk announced the establishment of xAI only in July 2023, publicly declaring his entry into the AI field and further hinting at a possible venture into gaming, which has led to severe confusion between the two brands. Specifically, Ex Populus alleges that xAI's actions have caused the following damages: First, market confusion: Consumers, media, and xAI's own AI model Grok mistakenly associate Xai with xAI, with some reports even misusing Xai's logo to represent xAI's gaming projects, resulting in brand recognition damage. Second, reputational damage: Musk, as a public figure, and the negative public opinion triggered by his xAI products (such as Grok generating anti-Semitic and violent content) have caused Xai to suffer "significant negative consumer sentiment" due to brand confusion, further damaging its long-established reputation. Third, unfair competition: On August 7, 2025, xAI's legal team threatened to cancel Xai's trademark registration, attempting to force Ex Populus to give up trademark rights. Ex Populus further noted that the United States Patent and Trademark Office (USPTO) has suspended multiple trademark applications from xAI due to Xai's priority, indicating that confusion between the two is indeed possible. Therefore, Ex Populus has made the following requests to the court: to issue a permanent injunction prohibiting xAI from using the "xAI" name or similar identifiers in the gaming and blockchain fields; to cancel xAI's existing trademark registrations and five pending trademark applications; to require xAI to compensate for economic losses due to trademark infringement, reputational damage, and to forfeit any profits gained from the infringement. Netizen reactions After this news was released, netizens from the crypto community and the tech field have engaged in heated discussions. Some netizens questioned Ex Populus's motives for the lawsuit, arguing that their intentions are not pure: for example, some netizens believe that Ex Populus is trying to exploit Musk's high profile to create hype, asserting that Xai and xAI belong to different fields, and that there is no direct conflict in products, suggesting that the lawsuit may simply be an attempt to attract attention or seek compensation. One user bluntly stated: "This is like Apple Computer being sued by Apple Records, the fields are different, and saying there is confusion is a bit far-fetched." Additionally, some comments pointed out that Musk and xAI's financial and technical capabilities far exceed those of Ex Populus: "Musk wouldn't bother with such a small company, Ex Populus's technology and funding are not even at the same level, this lawsuit is like an ant trying to stop a car." Furthermore, some users questioned Ex Populus's brand value, arguing that its $XAI token is performing poorly, indicating a lack of market confidence, and that Musk should not be blamed, stating that claims of Musk influencing users’ opinions and views are nonsense. However, despite this, there are voices supporting Ex Populus, believing that its actions to defend trademark rights represent the courage of small and medium-sized enterprises against tech giants, emphasizing the importance of brand protection in the blockchain industry. Currently, Musk and his xAI have not yet responded to this matter, and the outcome remains to be seen. Related reports Musk threatens to sue Apple: App Store rankings exhibit monopolistic behavior, maliciously suppressing Grok. Grok 4 is now open for free use, Musk's xAI faces off against GPT-5. Peter Thiel discusses human stagnation: starting in 2024, Musk no longer believes in Mars. <Ethereum blockchain game Xai angrily sues Musk: xAI trademark infringement, misleading the market, netizens debate: hype or righteous battle?> This article was originally published in BlockTempo, the most influential blockchain news media.