Ethereum Gaming Network XAI Sues Elon Musk’s AI Company in High-Stakes Crypto Clash

Gaming blockchain takes on tech titan in landmark legal showdown

XAI Network draws first blood against Musk's AI venture—alleging trademark infringement and market confusion in the rapidly converging worlds of artificial intelligence and decentralized gaming. The Ethereum-based gaming platform claims Musk's company is encroaching on territory they've been building since 2022.

Legal eagles circle as crypto meets AI

This isn't just about names—it's about billions in potential market cap. XAI's native token dipped 5% on the news while Musk's venture remains privately valued. Trademark attorneys are calling this a textbook case of brand collision in emerging tech sectors.

Gaming protocols aren't playing nice anymore

The lawsuit demands immediate cessation of the XAI name usage plus unspecified damages that could reach nine figures. Court documents reveal XAI Network processed over 2.3 million gaming transactions last quarter while Musk's company just secured another funding round at a $18 billion valuation.

When your branding gets so confused that even crypto degens need a flowchart to tell the difference—maybe it's time for someone to actually build something useful instead of just naming things.

XAI’s claim over Elon Musk’s trademark infringement

According to the document, Ex Populus filed the lawsuit on the grounds of trademark infringement, unfair competition and false designation of origin as well as unfair business practices. It claims to have registered the trademark since June 2023, which protects it under common law rights.

Despite the trademark, Elon Musk has continued to publicly use the name to refer to his artificial intelligence company linked to the X social media platform. On July 2023, Elon Musk announced he WOULD create a new artificial intelligence and technology company that he named “xAI.”

As a result, many traders began mistaking Ex Populus’ network for Musk’s AI gaming venture. As the post had already reached more than 36 million viewers, it amplified consumer confusion between the two brands. Not to mention, X’s own AI assistant Grok mistakenly told users that the social media account for the Ex Populus network was linked to Musk’s AI company.

“Consumers familiar with Plaintiff’s XAI brand and its established reputation in the video gaming industry instantly began inaccurately conflating Plaintiff with Musk’s/Defendants’ “xAI” company,” wrote the company in the lawsuit filing.

XAI price analysis

After news of the lawsuit against Musk went viral, the native token experienced a drop in value. On August 25, the token dropped 5.16% from its previous daily peak. It is currently trading at $0.0499.

The sharp rejection and highlighted drop zone indicate that bears remain in control for the short term. If this level fails to hold, the next significant support could be around the $0.047–$0.048 range as it continues to dive even lower.

The Relative Strength Index currently sits at 36.89, which is close to the oversold zone. This indicates that bearish momentum is strong but could be nearing exhaustion. The RSI has been trending below its moving average, reflecting sustained weakness. However, with RSI nearing oversold territory, a short-term relief bounce is possible if buyers step in.